LAS VEGAS -- Nevada's foreclosure problems still haven't slowed. Sales are dipping and some homeowners are turning to lawsuits to stop what they call fraud and ripoffs.
For the thousands of people trying to follow the rules, companies are taking advantage and poaching homes -- false filings, complicated computer tricks and lawyers saying it is all a scam.
"I feel like I'm getting ripped off or you're taking advantage of me," said Bob Brown.
Brown wanted to save his house after a bad economy cut his pay in half. So like so many others, he called up his mortgage company Select Portfolio Services.
"I can make the payments. It's going to be tough, but I'd like to see if I can qualify for a modification," he said.
Like many others, Brown was told the bank did not want to modify you he was not behind on his payments. So following the rules, Brown let his payments lapse, as suggested by his note holder. Two days later, he got a foreclosure notice on his house. So began a fight of paperwork and time -- a bait and switch, says Brown, that lead to many questions.
"Who owns my mortgage? They said, 'Don't worry about it. You don't need to know that stuff.' I said, 'Well, yes I do,'" he said.
Reno attorney Robert Hager has cobbled together multiple homeowners like Brown to sue different banks and mortgage companies to stop these problems.
"It's created an environment that is ripe for fraud," he said. "They do not actually have the authority to foreclose."
Hager says companies file falsely to gain access to homes they don't have a right to take. They also use powerful computers to file thousands of documents a day, called "robo-signing."
"The benefit, of course, is to shake people out of their houses as quickly as possible in order to take houses they're not entitled to," said Hager.
The suits have helped Brown keep his home, for now. He followed the rules, did what was asked, and it still may not be good enough.
Because Hager is suing multiple companies with different clients, the timeline for action is long. Brown's mortgage company has no direct phone line to their offices and were unable to comment.
The paper trail is always very difficult to follow in these cases, if these companies even kept records at all.
