Fraud and the Statute of limitations in Foreclosure Defense

What every Homeowner Needs to Know

Our latest post on getting the home back after foreclosure drew some many questions and emails on the effect of the Statute of Limitations on your post foreclosure rights that we had to follow up here. This is how Fraud affects all of this.

One of the most common questions homeowners ask us is this:
“If I discover fraud in my foreclosure case, is it too late to do anything about it?”

Her is our answer. It depends. And here’s why.

Why Fraud Changes Everything

Every state has statutes of limitations (SOL) that set deadlines for filing lawsuits, including claims of fraud. But here’s the key: most states allow the clock to start ticking when the fraud is discovered, not when it happened.
This is called the “discovery rule.” It means if you just uncovered evidence that your foreclosure was based on false documents, forged signatures, or fabricated assignments, you may still have a case—even years later.

Case-by-Case Basis

There’s no “one-size-fits-all” rule here. The outcome depends on:

• Your state laws (Florida, Texas, California, New York all have variations)
• The stage of your foreclosure case (Is it ongoing? Final judgment? Property sold?)
• The type of fraud discovered (Forgery, robo-signing, fake endorsements, fabricated loan transfers)*FALSE AFFIDAVITS “SWORN UNDER THE PENALTIES OF PERJURY” SUBMITTED BY THE PLAINTIFF AND THROUGH THE AUTHORIZED REPRESENTATIVE OF THE “SERVICER” TO ALLEGEDLY AFFIRM THE MATERIAL FACTS AND WHEN PLAINTIFF ALLEGEDLY PURCHASED THE PROMISSORY NOTE (CHAIN OF TITLE)*

Void Judgments: No Time Limit

In many states, including Florida, a void judgment—a judgment entered without proper authority or jurisdiction—can be attacked at any time.
For example, Florida courts have repeatedly ruled that void foreclosure judgments are unenforceable and can be vacated years later because they were never valid in the first place. (Florida case commentary)

We often use this principle when assisting in the filing of:

• Independent wrongful foreclosure lawsuits INCLUDING ADDITIONAL CLAIMS RELATING TO THE FRAUD, DECEPTIVE TRADE PRACTICES, CIVIL THEFT, FILING FALSE DOCUMENTS IN THE PUBLIC RECORDS
• Motions to vacate a final judgment of foreclosure and Foreclosure Sale
• EXPERT AFFIDAVITS TO SUPPORT EMERGENCY MOTIONS TO VACATE/INJUNCTIONS/INDEPENDENT CIVIL ACTIONS.

Real-World Examples

• Texas: In Reinagel v. Deutsche Bank Nat’l Trust Co., 735 F.3d 220 (5th Cir. 2013), homeowners challenged assignments they claimed were robo-signed. The court ruled such assignments were voidable, not void, and borrowers lacked standing to challenge them—but this case shows how fraud claims arise years after foreclosure. NOTE: ALTHOUGH THE ASSIGNMENTS MAY BE VOIDABLE UNDER SOME CIRCUMSTACNES, SPECIFIC STATE STATUTES PROVIDE THE HOMEOWNER WITH STANDING TO CHALLENGE RECORDED INSTRUMENTS IN THE PUBLIC RECORDS INCLUDING ASSIGNMENTS OF MORTGAGE, WHICH MAY PROVIDE THE HOMEOWNER A BASIS TO RECOVER MONETARY DAMAGES AGAINST THE BANK DESPITE LOSING THE HOME. SOME STATES PROVIDE FOR THE RECOVERY OF TREBLE DAMAGES IN THE EVENT FRAUD IS PROVEN IN THE FILINGS.
  (Read more)
• California: In Rossberg v. Bank of America (2013), the court rejected forgery claims based on late notarization, but California law allows borrowers to challenge void foreclosures, as reaffirmed in Yvanova v. New Century Mortgage Corp., 62 Cal. 4th 919 (2016), which held that borrowers have standing to assert wrongful foreclosure if the assignment was void. SAME REASONING AS ABOVE.
  (Read Yvanova summary)
• Florida: Courts have confirmed that a void judgment can be vacated at any time, even many years after entry, if the plaintiff lacked standing at inception. This principle applies in cases where fraudulent documents were used to obtain foreclosure judgments.

State Comparison: Fraud & SOL Rules

The Burden is on You

To overcome the statute of limitations, you must prove when you discovered the fraud. Courts will look for:

• Evidence that the fraud wasn’t obvious earlier
• Why you couldn’t have reasonably discovered it sooner; NEWLY DISCOVERED EVIDENCE
• Proof that you acted promptly after discovery; COURT FILINGS, EMERGENCY INJUNCTIONS, PETITIONS, ETC.

This is why documentation is king. We carefully examine the documents used to get the foreclosure judgment—assignments, endorsements, affidavits. We often find they are riddled with inconsistencies that can help us expose the fraud.

Many of our clients first discover fraud when they hire us for a Case Analysis. Many times during this process we are able to document fraud, and most importantly, provide expert affidavits and the ability to testify at trial to prove the fraud. Once confronted with our expert affidavits documenting cases of fraud upon the court by “pretend Lenders” these fake servicers and lenders often drop their cases on the spot. It’s why so few of the cases we are involved in rarely go to trial. Want to see a sample of our work? Join our private facebook group here where we regularly post redacted drafts of motions, claims and expert affidavits we use on our litigation support practice.

Bottom Line

Fraud is serious, but the law still requires precision and timing. Each case has its own unique DNA, so don’t assume the statute of limitations bars your claim. If you believe you may have been the victim of Fraud don’t delay in calling our office to learn more about your rights.

Your Home is your Castle We Help you Defend It

Tags: foreclosure defense, fraud, Homeowners Electronic Mortgage Registration System, homeowners in distress
Posted in Corruption, discovery, evidence, Fabrication of documents, foreclosure defenses, legal standing, securities fraud |