House Refinance Center
Notaries Fraud, Foreclosures And Robo-Signing
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Should Notaries Be
Punished For Their
Role In Foreclosure
Robo-Signing?
The publicity surrounding the illegal eviction of
homeowners, the rise in foreclosure fraud and
robo-signing has put a blemish on the careers of
thousands of honest notaries. There are over 4.5
million notaries in the US.

The notary profession goes back to ancient
Rome. Back then we called them "scribes". They
recorded legal proceedings for Cicero and other
high power officials.

Notaries in the US are appointed by a government
agency or entity. This could be a court or the
state where the notary will practice. The term of
office is for a set period and has to be renewed at
the expiration date. The main functions of a notary
are administering oaths and providing
acknowledgements. The witnessing of a signature
on a documents is an important legal duty of a
notary. That is why the mortgage fraud and
robo-signing fiasco issues pose a challenge to our
judicial system.

False notarizations on foreclosure documents by
the banks are at the root of the mortgage fraud
fiasco. The notary certifies that the signature on a
document belongs to the signer, but the notary
didn't see the person signing the document. False
notarizing is criminal. So far I haven't heard of a
notary going to jail for this offense.

The large volume of foreclosures to be processed
has put pressure on lawyers, notaries and other
personnel working for the banks and lenders.
However, this is not an excuse for breaking the
law. There are two distinct law being broken. The
first is someone signing on behalf of the lawyer.
The second is having a notary say that he
witnessed a signature when he didn't.

So what is the punishment for someone who make
a false statement to a notary? If we look at the
California penal code, for example, the penalties
are serious. Section 115.5 states:

(b) Every person who makes a false sworn
statement to a notary public, with knowledge
that the statement is false, to induce the notary
public to perform an improper notarial act on an
instrument or document affecting title to, or
placing an encumbrance on, real property
consisting of a single-family residence containing
not more than four dwelling units is guilty of a
felony.

Statue of limitations in most state involving
notaries is four years. So unless we act quickly no
one will be prosecuted for these misdeeds. The
foreclosure mills have slowed down but this is no
solace for a family that was illegally foreclosed. In
my opinion the injured party, the homeowner,
should turn to the courts for justice. Hire a lawyer
and prove your case in court. There are systems
established to punish the guilty and to
compensate the wronged.

Notary bond $15,000.

The bond protects the injured party, in our
discussion it would be the homeowner. Each state
is different so contact your attorney general's
office.

Errors and Omission.

This is an insurance policy that pays for the
mistakes of the notary. It does not cover
dishonesty, fraud, criminal behavior or illegal acts.

Criminal.

Fines and/or imprisonment for misdemeanors or
criminal acts.

Civil.

Financial reimbursement to the injured person
plus legal and court fees.


Administrative.

Suspension, revocation or denial of the notary's
commission.

"It's notarized, so it must be legal". We all found
out that this is not always the case. Robo- signing
exposed the flaws in the system. The courts are
moving to make the necessary corrections. But
this might be too late for some homeowners who
have loss their homes.
What Happens When
A Notary Commits
Fraud In Closing Your
House Sale Or
Purchase?
Mortgage fraud and real estate fraud were not the
causes of the meltdown. Sure they contributed to
the decline in house values which led to millions of
homeowners being underwater with their
mortgages. But these types of frauds were with us
before the mortgage meltdown and they will be with
us forever. As a homeowner and as someone who
might be considering buying and selling houses
you have to be aware of how the scams work and if
you become a victim how you can get justice.

Deed fraud.

Deed fraud is common in real estate. The notary is
at the center of the transaction. Most county
recorders have a difficult time confirming the
legality of information on a deed. It is left to the
notary to verify the identity of the person signing
the purchase agreements, and to make sure that
the person is not being coerced.

The notary's certificate of acknowledgement of a
deed is the foundation of every real estate
transaction. It affects the title insurer, the lender,
the purchaser of the house and the seller.

In another variation of the deed fraud the con artist
searches for vacant properties. When he finds
one, he then looks to see if there are unpaid back
taxes or liens. The crooks would forge affidavits or
enlist the help of a notary. If the property is owned
by a deceased person, it make the crook's job
easier.

Identity fraud.

The con artist poses as a homeowner and takes
out a mortgage on the property by forging the real
property owner's signature the loan documents.
The notary helps the plan by turning a blind eye.
The loan is never paid and the house goes into
foreclosure.

Misrepresentations.

Misrepresentation is a scam that targets trusting
and naive homeowners. These homeowners are
tricked into signing documents that transfer title of
their homes to the con artists. It starts with the
homeowner signing documents at the notary's
office. Sometimes there are pages with blank lines
that are later filled in with impossible repayment
terms. These documents will have several
misstatements of the contract terms resulting in
higher mortgage payments. The homeowners can't
make the payments and therefore loses the house.
The con artist steps in and promises to help the
homeowner save the house.

If you suspect foul play with regards to your
mortgage or house deed, contact your local police
and file a formal report.