Is there any part of the foreclosure process that the banks actually do right?
Now, even the simplest part of the foreclosure process, the notice of default letter, has been messed up by banks. The notice of default letter is the beginning of the foreclosure process. In this letter, the mortgage notifies the homeowner that the property is in default and that the homeowner is to pay the mortgage current or to setup satisfactory arrangements. Many of these letters are templates (in fact, you can google 'letter of default' and find a handful of templates). Seems so simple, even a caveman could do it, right?
Well, according to John Saari of Home Savings of America, the banks actually can mess up something simple, as is evidenced by this potential notice of default letter scandal:
Here's the issue of the notice of default letter scandal: Every Notice of Default letter is supposed to have a signature on it. That's right these thousands upon thousands of Notice of Default letters that are issued every month should have a signature on it. Now technically according to the law, whoever has signed this letter should have direct knowledge that the mortgage is in fact in default. So these thousands and thousands of signatures every month are supposed to be done only after reviewing the documents, but that is not the case. The title companies and servicers are signing and sending out these letters. So essentially they are starting the foreclosure process. Since we are a country of laws and interpretation of those laws, one could then interpret that this is illegal. There is a case in NV right now against Wells Fargo that is arguing a foreclosure is illegal because it is being started by someone that hasn't directly reviewed the documents. http://ping.fm/6HnFc
Will the banks' failure to sign these letters turn into a big notice of default letter scandal, similar to the likes of robo-signings and mortgage assignments fraud? John points out that we are a country of laws, but will this notice of default letter scandal actually be enough to render some of these foreclosures illegal?

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