Michigan To Probe "Forged" Foreclosure Documents

First, it was the robo-signing scandal. Now, Michigan Attorney General Bill Schuette said his office is looking into what he calls questionable mortgage documentation filed with Michigan's Register of Deeds offices during the current foreclosure crisis.

The investigation centers on Oakland County, Mich., where County Register of Deeds Bill Bullard and other county officials have uncovered Assignment of Mortgage documents filed in their offices with signatures of some mortgage executives that appear to have been forged by many different people, raising questions about the authenticity of the documents.

For example, a recent "60 Minutes" news broadcast showed that the name "Linda Green" was signed to thousands of documents nationwide but with many different variations in handwriting. Bullard, in a letter to Schuette, said that his office has found many examples of these documents in its files, as have other county Register of Deeds offices, and plans to forward the questionable documents to the Attorney General's office for review.

Expansion of robo-signing probe

Schuette says his office is beginning the process of working with local, state and federal authorities to look into the issue. Since late last year, the Michigan Attorney General's office has also been a part of a 50-state Attorneys General workgroup addressing the robo-signing issue and other consumer protection issues.

"The idea that anyone would forge documents during a process in which a family is losing their home is absolutely unconscionable," said Schuette. "We are working closely with federal and local authorities to get to the bottom of this."

Oakland County, in the Detroit metro, is one of the hardest hit areas of the country when it comes to foreclosures. In a letter to Schuette, Bullard said the recent “60 Minutes” report prompted a search of county records, where a number of foreclosure documents surfaced bearing the signature of Linda Green.

Basis for overturning foreclosures

If an investigation reveals examples of fraud, says Bullard, it could be the basis for setting aside completed foreclosures, as well as civil or criminal proceedings.

"I want Oakland County residents going through the foreclosure process to be aware of this potential problem with their mortgage documentation and strongly encourage them to review their files," said Bullard.  "My office will continue its investigation and work with Attorney General Schuette's office as we find more questionable documents."