According to Kate Berry at American Baker, “robo-signing ” concerns delayed thousands of foreclosures in the 23 states. Now a new controversy is emerging. . .
The Notice of default.
The notice of default is the initial letter that a lender sends to a homeowner who is far enough behind on payments to begin a foreclosure. Every notice requires a signature. In some cases, notices were signed by employees who did not verify the information.
Borrower attorneys are arguing that this is grounds to stop a foreclosure.
Christopher Peterson, dean and law professor at the University of Utah adds,
Foreclosure Timeline
“Whoever signs the [Notice of Default] needs to have knowledge that there is in fact a default,”.
As the NOD is literally the first formal step the lender takes in the foreclosure process this practice is especially troubling.
Original Article: New Point of Foreclosure Contention: Default Notice from American Banker | Friday, January 21, 2011
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