Robo” Signing Lenders????????
What in the world is a “Robo” signing lender? Yet another term that has come out of the painful housing mess. This term is used for lenders who have processed foreclosures without looking at the documents, but, in fact have notarized documents saying that the borrowers have looked at and approved the notarization without even being shown the documents. This is clearly unlawful. This occurrence is found to be rampant throughout the lending industry nationwide.
The result of this discovery has put a crimp in the business of guaranteeing titles by title companies. Most now will not close on a property until they receive documentation guaranteed by the lenders that the homes are free from this “Robo” signer problem. A further glitch, until this is straightened out, is a slowing of escrow closings, since title companies are at risk by guaranteeing title to a property if a foreclosure turns out to be faulty.
Don Schaller
Broker Owner
Schaller Family Realtors
Dickson Realty Truckee
