Avid Law Center

February 16, 2012 13:37 ET

Avid Law Center Performs Securitization Audits That Could Save Distressed Homeowners From Foreclosure

ALISO VIEJO, CA--(Marketwire - Feb 16, 2012) - The recent $25 billion mortgage settlement with the nation's five largest banks has left many homeowners wondering how they will be affected, especially those who have already been foreclosed on. Whether a homeowner has already lost their home or they are on the verge of having it taken away, there are steps beyond the settlement that homeowners can take to prove that they are entitled to mortgage relief.

One strongly recommended service is a securitization audit. A securitization audit, such as those conducted by Avid Law Center, is an investigation that determines if a loan was improperly securitized and can uncover other wrongful acts by the lender in the foreclosure process. If the audit identifies enough inconsistencies, there is a good chance that any foreclosure proceedings conducted against the homeowner may have been illegal or wrongful.

"In any litigation surrounding improper foreclosure practices, it is up to the homeowner to prove that the lender is illegally or wrongfully foreclosing. We have found that one of the best ways to do this is with a securitization audit," said Aron Rofer, President, CEO and Managing Attorney for Avid Law Center. "This helps give our attorneys the information they need to determine if we can build a case, and may give our clients the best chance of achieving positive results consistent with their needs."

Avid Law Center warns, however, that not all securitization audits are the same. A proper audit not only covers the issue of securitization, but also reviews property records and any foreclosure documents to help determine if they were improperly assigned, or if any documents were fraudulently "robo-signed." An audit will also identify if the Mortgage Electronic Registration Systems, known as MERS, was used to securitize the loan. MERS has come under significant recent scrutiny with claims that it helped large lenders improperly trade mortgages, avoid millions of dollars in public record recording fees, and whether it participated in the wholesale fabrication and forgery of millions of foreclosure documents.

During a securitization audit, questions that should be answered include:

  • Was your mortgage note properly transferred into a trust?
  • What trust was your loan placed into?
  • Has your loan already been paid off in part or in full by investor's insurance?
  • What does the pooling and servicing agreement reveal about your servicer's activities?
  • Have the deed and note been separated?
  • Was MERS involved in the securitization of the loan?
  • Were your loan, assignment of loan, and/or foreclosure documents robo-signed?

A major provision of the national mortgage settlement is intended to resolve claims of improper foreclosure practices, specifically robo-signing, as well as accusations that lenders foreclosed on homeowners who were in the process of being evaluated for loan modifications. While the settlement resolves potential federal and state government claims against the lenders, it does not prevent individual homeowners from seeking damages, even if they ultimately do receive some small benefit directly from the settlement.

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About Avid Law Center
Based in Orange County, California, Avid Law Center is a full service Real Estate Litigation Law Firm representing consumers throughout the state. With over 30 years of legal experience, as well as significant experience in business and finance, Avid Law Center challenges banks on behalf of their clients to stop foreclosure and reduce clients' mortgage payments to an affordable amount.

The information in this release is for general information purposes only. Nothing in this release or on the Avid Law Center website or blog should be taken as legal advice. Prior successes are no guarantee of future performance. Litigation is inherently uncertain and results in litigation are never guaranteed.

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