Fraud is another basic argument used against lenders where the loan origination documents bear some indicia of foul play. Fraud is an intentional deception made by a party to bring about a personal gain or to damage another party. Predatory lending and servicing agreements tend to fall under the broad scope of fraud.
Fraud requires a misrepresentation of an existing fact made by one party with knowledge of its falsity and intent on the speaker’s part to induce a reaction from the other party as a result of the other party’s rightful reliance on the truth of the representation and damages suffered as a result.
As banks and other lenders were making millions of home loans during the housing boom of the early-to-mid 2000s, they were not always responsible with their lending. Many lenders practiced predatory lending and made loans to buyers who could not afford them, or loans that were based on inflated home and property values.
Banks and lenders then packaged these loans and sold them to investors across the world. When the housing bubble burst, and homeowners suddenly owed more than what their homes were worth, banks started foreclosing.
With so many mortgages being held by so many different companies, lenders began to cut corners to make the foreclosure process work more quickly. In some instances, these shortcuts included forged documents, non-existent titles and other examples of foreclosure fraud.
At the foreclosure law offices of EV Has, LLC, we understand the tactics that banks and lenders used to defraud homeowners and commercial property owners. Our lawyers provide dedicated representation to people who have been victimized by foreclosure fraud and need to protect their rights.
Before they can foreclose, banks and lenders need to prove that they have a legal right to do so. Our firm will thoroughly investigate the circumstances to determine whether these companies are using forged or fabricated documents to show ownership interest in the properties in question.
Learn more information about foreclosure fraud in Illinois. To schedule a free initial consultation, please call 312.775.0980 today.