In an original article by Rusty Collins of the Florida Times Union, details the fall of David Stern, the lawyer know as Florida’s ‘Foreclosure King’. Sterns firm pushed through wholly 20% of the recent foreclosure’s filed in Florida. That firm also pushed through a mountain of foreclosure suits on a daily basis which the author referred to a ‘Sue-nami’ given the speed & volume with which these suits were filed (125 docs per hour in one eight-hour preiod), it became evident that the documentation for such lawsuits was suspect.

The state began a major investigation into Stern’s foreclosure mill. The firm created a massive foreclosure volume without regard to homeowners or proper legal procedure, ultimately compromising their client banks as well. Without foreclosure defense; however, Stern’s & other foreclosure mill lawsuits go forward on poor documentation. Homeowners lose their homes over sloppy legal work when no questions get asked. On March 31st, David Stern’s practice closes its doors.

The tsunami reference may be a bit untimely given the gravity the situation in Japan but just like the tragedy in that country, the aftermath of the foreclosure crisis in Florida will haunt us for generations and faulty real property titles will be ‘nuclear’ for a long time.

The Florida Bar has a new set of rules for attorneys who discover fraud in foreclosure.

An article by By Christine Stapleton & Kimberly Miller of the Palm Beach Post, details that the direction was published in the Florida Bar Newsletter as part of an outline in a new free online foreclosure class offered by The Bar.

[The Florida] Bar says attorneys must notify a judge about potential fraud — including robo-signed affidavits and forged notary stamps — even if a foreclosure case is closed and the home has been sold at auction.

The Bar is instructing lawyers to disclose Foreclosure Fraud in private hearings. Reviews are mixed to say the least….

Attorney for the Bar:
You try to cause the least amount of harm as possible to the client, [if] fraud is suspected, an attorney’s duty to the court supercedes the attorney’s duty to the client[...]

Palm Beach Attorney:
[Widespread foreclosure fraud by banks] is a very public problem and to try and address it in a private way is not going serve the court in its attempt to assure everyone about the integrity of the court [...]

This latest twist in the state’s foreclosure woes should prove to be quite interesting!

Original Article – Florida Bar says foreclosure lawyers must report fraud to court

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I recently came across this article, State details foreclosure chaos,  by Kimberly Miller  in The Palm Beach Post (Jan. 5, 2011). This clearly outlines the abuses of the system that have been going on. It is because of these abuses that the unfortunate homeowner facing foreclosure should seek counsel and protect their rights.

The case titled “Unfair, Deceptive and Unconscionable Acts in Foreclosure Cases” filed by  the attorney general’s economic crimes division:

Some highlights:

• corner’s cut at every turn to fast track foreclosure:
• questionable signatures and notarization:
  (…one bank employee’s signature appears four different ways on a massive collection of documents)
• dubious assignment of mortgage documentation:
  (sale of mortgage note from one lender to another bank – thousands of loans were packaged then repackaged until there ownership was nearly impossible to trace)
• Four of Florida’s large foreclosure law firms that represent the banks are under investigation
• “Sewer” service complaints are being looked into:
  (bank hired process servers allege providing document service to thousands of homeowners a day)

Attorneys general from all 50 states are cooperating in unraveling the mess.

While this is not real estate related, I feel that this is something that we all should look into. Professional conduct is something that everyone should think about not just attorneys. I am, like everyone else, often annoyed by the actions of others as I am sure I have done to others. This is clear evidence that this sort of conduct will not be tolerated by the Bar.

Florida Supreme Court sanctions lawyers engaged in toxic e-mail feud:

Florida Attorney General investigates poor process service & fraud