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Validity of Documents under Maryland Mortgage Fraud Protection act

Beltsville, MD |

This question will determine whether I see an attorney. We were foreclosed on. We were victims of a bait and switch mortgage (which violated TILA) and it was found that we could never repay it but the judge told us in court that is too late to bring it up since the closing was in 07. But besides this the notary who endorsed the deed was not present with us. And in the foreclosure case the assignment of the note was never produced as evidence and surfaced only later. To get to my question, although we seem to have lost the home. Is there anything that can be done with the above information especially in reference to the act. The fraudulent notarization is still entered in the land records which shouldn't be right. Feel free to ask clarification questions as I know this is disjointed.

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Attorney answers 1


The judge was probably correct about the bait and swtich issue. In Maryland, there is a general three-year statute of limitations. This means that, if you do not bring your claim within three years of the date the claim arises, with few exceptions, the claim becomes time barred, meaning you lose your rights. Since you knew or should ahve known about the bait and switch once you started receiving you monthly mortgage statements, and since you did not atempt to assert the claim until three years after closing, your claim was barred.

In terms of the fraudulent statements in the Deed, there is probably nothing that can be done even though the foreclosure was based on those documents. Since you knew at the time of the foreclosure, in which you asserted objections, that the Deed was forged, one of two things occurred -- you either argued this to the judge at the foreclosure hearing or you did not. If you did make the argument, the judge disagreed with you. Appealing the judges ruling (assuming the 30-day deadline for a civil appeal has not expired, would be governed by a "clearly erroneous" appellate standard. Under this standard, it is near to impossible to have a judge reveresed. If you did not raise the argument, then you waived your rights.

There is one final issue, however, which may actually work in your favor. Prior to 2011 or so, there were wide-spread instances of robo-signing. Robo-signing is where, in a foreclosure action, the bank or its lawyers file an affidavit, where (a) the person who is named in the affidavit did not actually sign the affidavit, or (b) the person named in the affidavit did not read the affidavit before signing it. If there is evidence to suggest this occurred in your case, you may have a claim for money damages.

You should speak with a foreclosure attorney or Maryland consumer attorney to see if there is such an evidence. If so, although you could not reverse the forclosure, you could sue the bank for the value of your emotional damages.