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Foreclosure Fraud and The Wrong Party

Foreclosure Defense, Real Estate August 30, 2012

When a family is sued for foreclosure of their home by a Wall Street investment scam, the lawsuit looks something like this, U.S. Bank as Trustee for CMLT 2007-AMC2 v Jane Smith and John Smith.   In this lawsuit, U.S. Bank as Trustee for CMLT 2007-AMC2 has no problem with hiring a foreclosure mill lawyer to file papers with an American court and tell a judge that his client has the right to kick the family out onto the street and repossess the home since they are owed a lot of money that the family promised they would pay.  As it turns out though, no family ever borrowed money from these investment scams with names like U.S. Bank as Trustee for CMLT 2007-AMC2.

If the shadowy U.S. Bank as Trustee character gets it’s way, the foreclosure is granted by the judge, the title reverts to U.S. Bank as Trustee at the foreclosure auction (unless a new buyer bids a higher amount), and the family is evicted.

Now, in many cases, the home quickly falls into disrepair, incurs municipal liens for non-payment of sewer and water bills, stacks up code enforcement violations, is delinquent for homeowner association dues, becomes an eyesore and safety hazard, and further brings down the sinking property values in the neighborhood.

When cities sue these “slumlord banks” as they call them, to maintain their newly acquired foreclosed properties,  the banks quickly change their tune, making statements that conflict with the position they used to kick out the families from their homes in the first place.  “U.S. Bank says the city’s lawsuit targets the wrong party.”

Our firm provides vigorous foreclosure defense that can highlight the problems these shadowy foreclosing banks have in foreclosing.  If you suspect the “wrong party” is suing to foreclose on your family’s home, contact us to discuss your options and rights when banks use this common foreclosure fraud tactic.

Remember, in Florida, after being served with a lawsuit, you must reply to the court in twenty calendar days in order to preserve your rights and to best defend your family.  Please do not let those twenty days lapse without filing a legally sufficient response to the court that covers all possible defenses you might have.  As foreclosure defense attorneys serving the South Florida community for many years, we have developed a wide array of defenses in order to give you a multitude of options.
To read more on  Banks labeled ‘slumlords’ over foreclosure neglect, go to CNN Money here.