Class Action alleges AURORA photo-shops "Assignments" to win in Bankruptcy Court
This firm has filed a Class Action lawsuit against Aurora Loan Services LLC seeking damages and equitable relief from Aurora's business practice utilizing photo-shopped Assignment's of Deeds of Trust and false declarations in thousands of California bankruptcy cases. Though the use of phony documents, AURORA creates the ILLUSION of TRANSFERS of MORTGAGE LOANS from loan originators directly to AURORA. AURORA uses the fabricated evidence to win in thousands of bankruptcy matters and earn millions in attorney fee awards.
Only a true "party in interest" has standing to seek remedies and relief from the bankruptcy courts. As many loans were never properly transferred to MORTGAGE BACKED SECURITY TRUSTS and the cost of actually proving up the chain of title to a given loan is substantial, AURORA has employed this business practice primarily as a cost savings measure.
AURORA circumvents the standing issue by creating documents that make it appear that a loan was transferred from the originator directly to AURORA after a bankruptcy is filed.
As a new creditor, AURORA systemically ignores the obligation to provide a statutory transfer notice to borrowers pursuant to TILA section 131g.
The illegal practice allows AURORA to establish "standing" in BK Courts and more easily obtain relief from the automatic stay preventing foreclosure, receive millions in pay-outs from bankruptcy trustees and save millions in attorney fees and processing expenses. The practice chills legal opposition through the use of official looking title documents and affidavits signed under penalty of perjury. The practice provides AURORA with an unfair competitive advantage over its legitimate competitors and degrades the integrity of the bankruptcy system. As a prevailing party, AURORA has been granted millions in attorney fee awards from duped judges based on false evidence. AURORA then passes on the attorney fee costs to borrowers by adding charges to each loan balance.
The deceptive business practice allows AURORA to cheaply and easily prove-up its own "phantom standing" as a new creditor, especially where no evidence exists or the cost of proving "chain of title" is too high.
The practice circumvents the legal requirement that AURORA's network attorneys prove-up "chain of title" of thousands of MORTGAGE LOANS believed by AURORA to be owned by specific MORTGAGE BACKED SECURITY TRUSTS. Typically, a loan is sold THREE TIMES before it is owned by a MORTGAGE BACKED SECURITY TRUST so as to protect TRUST investors if a loan originator becomes insolvent. The estimated cost of legitimately transferring one loan, three times is $1,500.00 and a typical TRUST owns 5,000 loans.
In the name of profit, AURORA hides the identity of the true loan owners from the bankruptcy players, by creating fabricated evidence of thousands loan transfers to AURORA that never occur.
Contact the office to discover how this lawsuit may affect you.
A copy of the lawsuit can be viewed at:
