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Robo Signing is Illegal in California Non Judicial Foreclosures http://mikerooneylaw.com/RoboSigning.aspx

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Why Robo-Signatures Are Illegal in California and Other
About
Non-Judicial Foreclosure States
FAQ By Michael Patrick Rooney, Esq.
Commercial Mortgage Mod
With all of the press robo-signing has
Predatory Lending gotten, it is a bit surprising that everyone
is having such a hard time concluding
Bay Area DUI Attorney whether these practices effect California
foreclosures. My assistant even said to
Divorce/Family
me today, "but the banks say that it
Special Appearances doesn't matter because California is non
judicial."
Real Estate Seminars
Because the topic has not gotten the
Contact
treatment it deserves, I will gladly do the
News job. The following are by no means a
complete list, but are the most clear
Articles LEGAL reasons (setting aside pure moral
Avoiding Foreclosure questions and the U.S. Constitution) that
the Robo-Signer Controversy will lead to
Robo Signing is Illegal i massive litigation in California.
In short, Robo Signers are illegal in California because good title cannot be
Notary based on fraud, robo signed non judicial foreclosure sales are void as a matter
of law, the documents are not able to be recorded in California if they are not
Secure Online Payment
notarized, which we know was often not done properly, and finally, because
they robo signed forgeries ARE intended for judicial proceedings, including
evictions and bankruptcy relief from stay motions.

1. Good Title Cannot Be Based on Fraud (Even as to a 3d Party).

In the case of a fraudulent transaction California law is settled. The Court in

Trout v. Trout, (1934), 220 Cal. 652 at 656 made as much plain:

"Numerous authorities have established the rule that an instrument wholly

void, such as an undelivered deed, a forged instrument, or a deed in blank,
cannot be made the foundation of a good title, even under the equitable
doctrine of bona fide purchase. Consequently, the fact that defendant Archer
acted in good faith in dealing with persons who apparently held legal title, is
not in itself sufficient basis for relief." (Emphasis added, internal citations
omitted).

This sentiment was clearly echoed in 6 Angels, Inc. v. Stuart-Wright Mortgage,

Inc. (2001) 85 Cal.App.4th 1279 at 1286 where the Court stated:

"It is the general rule that courts have power to vacate a foreclosure sale
where there has been fraud in the procurement of the foreclosure decree or
where the sale has been improperly, unfairly or unlawfully conducted, or is
tainted by fraud, or where there has been such a mistake that to allow it to
stand would be inequitable to purchaser and parties." (Emphasis added).

Hence, if forged Robo Signed signatures are used to obtain the foreclosure, it
CERTAINLY makes a difference in California and other non-judicial foreclosure
states.

2. Any apparent sale based on Robosigned documents is void -

without any legal effect - like Monopoly Money.

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Robo Signing is Illegal in California Non Judicial Foreclosures http://mikerooneylaw.com/RoboSigning.aspx

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