Robo-signing has been around a lot longer than originally thought, and could jeopardize the legality
over the deeds of tens of thousands of homes dating back more than a decade ago, the Associated Press (AP)
reports.
County officials across the country are finding mortgage paperwork that were improperly notarized or
signed without proper review, dating as far back as 1998, the AP has found in its analysis.
For example, in Guilford County, N.C., about 74 percent of 6,100 mortgage documents filed since 2006
were found to have questionable signatures.
"Because of these bad titles, property owners can't prove they own the properties they think they
bought, and banks can't prove they had the right to sell them," Jeff Thigpen, the registrar of deeds in
Guilford County, N.C., told the AP.
Since last fall, banks have faced investigations over “robo-signing” procedures, which consists of
shortcuts of approving and reviewing mortgage paperwork and foreclosures. The “robo-signing” scandal has
brought many foreclosures into question as home owners have challenged the validity of their mortgage
documents.
Mortgage documents with robo-signed signatures could throw into question the ownership of the
properties, says Katherine Porter, a professor at University of California Irvine School of Law.
Furthermore, if invalid documents are discovered in the chain of ownership, shoddy mortgage paperwork
has the potential to delay the sale of a home or make it difficult for buyers to get a mortgage because
title insurers won't write a policy for the property, says Justin Ailes, vice president of government
affairs of the American Land Title Association.
Source: “Widespread Robo-signing of Mortgage Documents Found as far Back as 1998 Could Haunt
Owners,” Associated Press (Sept. 1, 2011)