The Real Estate Bloggers

Foreclosure Robo-Signing Hits Sarah Palin – Clouds Title

Posted: 13 Jun 2011 09:39 AM PDT

Palin We have talked long and hard about the robo-signing issues that have the opportunity to wreak havoc on the real estate market. Now the foreclosure Sarah Palin has bought in Arizona has the opportunity to bring the issue to the attention of the nation.

Palin’s company, Safari Investments LLC, bought a 1.7 million dollar foreclosure in Arizona this past May. Now if you know anything about Palin you know she is a polarizing figure in the media. Republicans love her and the Democrats despise her.

These emotions have gotten a group of people to analyze every inch of the documentation of the foreclosure that she bought in Arizona and came up with 2 instances of robo-signing. Now there may be a cloud over the title of her home, something her detractors are gleeful about.

In a detailed graphic illustration of the paper chain leading up to the purchase of the 7,900-square-foot brown stucco Scottsdale home, McDonnell provided documents showing two fraudulent signatures involved in a refinancing and eventual foreclosure on the property. One of the signatures was “Linda Green,” the robo-signing moniker highlighted in an April “60 Minutes” piece.

“Linda Green” was supposedly a vice president at 20 different banks at the same time, according to the piece. In reality, it was a name forged by many different people at Docx, a company that ginned up legal documents that banks could use in court to proceed with foreclosures. via the Huff Post

The interesting fact the a witch hunt on Palin’s title is that if it is successful it will open the door for thousands if not hundreds of thousands of other claims against the banks. The real estate and banking industry have been working on making this issue go away with the politicians and it has largely flown under the radar.

But if an attack against the validity of Palin’s purchase and title to the property succeeds all hell will break lose in the real estate world. Palin has enough enemies in the political and media worlds that they will use this as a weapon to bludgeon her with giving the problem with faulty foreclosures the press to seriously open a gaping wound in the financial industry.

I have long been opposed to the banks taking shortcuts and denying those being foreclosed upon their rights. Now the banks may be facing their Bermuda Triangle of media and political attention.

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Foreclosure Robo-Signing Hits Sarah Palin – Clouds Title