1700 Foreclosures Temporarily Stayed in Ill. Due to Servicers’ Law Firms Tampering with Affidavits
Legal Services E-lert
Bibliographic Info:
Author: Mary Ellen Pomolik
Source: The Chicago Tribune, "Altered documents halt some Cook County foreclosures”
Date: March 25, 2011
The Chicago Tribune reports:
“A Cook County Circuit Court judge has taken the unusual step of temporarily halting at least 1,700 mortgage foreclosures after a law firm told the court that the cases contained altered documents, the Tribune has learned. Fisher and Shapiro LLC, one of the top three law firms used by mortgage servicers to handle their local foreclosure actions, reported to the court that, in a breach of protocol, affidavits in the cases were changed. Among other things, fees were added after the documents were signed by servicers. As a result, Moshe Jacobius, presiding judge of the Circuit Court's Chancery Division, has stayed the cases. The delay will not necessarily prevent delinquent borrowers in Cook County from losing their homes to foreclosure, but it likely will give some homeowners time to seek assistance or to make arrangements to live elsewhere. . . .
Accusations of shoddy foreclosure procedures have sparked investigations by all 50 attorneys general and individual state agencies into mortgage servicers' and attorneys' back-office procedures. The admission to the court by Fisher and Shapiro does not involve rubber-stamping of documents but rather removing the signature page, altering the affidavit's content and reattaching the signature page, the court said. . . . It's uncertain why the documents were altered or who ultimately bears responsibility. It's also unclear whether affected homeowners and servicers, as well as housing counselors, are aware of the court's decision: As of Friday, some were not. But what is certain is that the additional time needed to resolve the cases will further slow the foreclosure pipeline. Last year, 50,621 notices of initial mortgage default were filed in Cook County, and 70,550 cases remained active at year-end. . . .
‘It's similar to robo-signing in that it's a high-volume pattern and practice of cutting corners, expediting the process through making false representations,’ said Daniel Lindsey, an attorney at the Legal Assistance Foundation of Metropolitan Chicago, which is not directly involved in the matter. ‘The fallout is this order and some delay, and maybe (it will) help some people figure out some alternatives.’ The court's order specifies that Fisher and Shapiro notify parties affected by the stay. But some homeowners whose cases were affected and who remain in the properties say they have not received a notice.”