Winnebago County Recorder Nancy McPherson is one of a dozen county recorders collecting evidence of mortgage document fraud for Illinois Attorney General Lisa Madigan, and she told the Rockford Register Star in a story published on November 15, 2011, that she believes she has found evidence that “robo-signing” is still rampant in the Rock River Valley area. McPherson’s office found hundreds of apparent forgeries in a small sample of foreclosure document and she told the Register Star that she has noticed a greater number of mortgage modification documents. “We’re telling the attorney general not to settle. They haven’t fixed the problem yet,” McPherson said.
The settlement to which McPherson is referring is the rumored agreement the banks have been working with the federal government and 50 state attorneys general on for months. The New York Times reported in October that a possible settlement as high as $25 billion could give $1,500 to any borrower who lost a home to foreclosure since September 2008. That amount, however, is seen as being too generous for those whose foreclosure was done properly, and an insult to the wrongfully evicted.
As our colleagues at the Northwest Chicago bankruptcy firm of U.S. Law Attorneys, Ltd. noted when discussing robo-signing last month, “anyone who thinks they are a victim of such illegal practices have competent and experienced foreclosure attorneys representing their interests.” There is no telling when a settlement will be reached in regards to the robo-signing scandal or who exactly will benefit, but it appears that after a brief slowdown, more homeowners will soon begin looking for foreclosure help .
Would you be satisfied with a $25 billion settlement in this case? Or do you agree with McPherson that the state attorneys general should be holding out until the problem is fixed? Share your thoughts with our Chicago bankruptcy attorney.
Benjamin Brand Services – Chicago bankruptcy lawyer