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

Homeowner Class Action Against Bank of America Filed, Challenges Bank of America’s Ownership of Homes Obtained Through Improper Mortgage Foreclosures

Tampa, Florida – Teresa O’Neal and Marco Delgado, through the law firm of Forizs & Dogali, P.A., have filed a statewide class action against Bank of America alleging improper action during mortgage foreclosures.

This case is different from other similar lawsuits because it focuses on Bank of America’s current ownership of the foreclosed property. The Plaintiff group includes only borrowers who were improperly foreclosed out of homes which are now, after foreclosure sales, owned by Bank of America. The complaint seeks to restore the borrowers’ rights in their homes, and seeks to establish that Bank of America’s claim of ownership can be invalidated. The number of Florida homes which Bank of America now owns after improper foreclosures is unknown, but the Plaintiffs estimate the number in the thousands.
The Plaintiffs allege the improper foreclosure practices by which Bank of America obtained ownership of the properties includes false and forged affidavits, certificates of service, and other documents. They also allege the documents systematically contained inaccurate facts, or were signed by persons who lacked required knowledge, or were forged. The Plaintiffs propose that all prior foreclosure sales which were based upon such documents are subject to being invalidated by the borrowers.
In addition to seeking a declaration regarding the invalidity of prior foreclosure sales through which Bank of America took ownership of their homes, Ms. O’Neal and Mr. Delgado allege that Bank of America violated Florida’s racketeering laws, and that Bank of America’s use of the court system to deprive them of their homes was in violation of their civil rights, and that Bank of America’s conduct violated the federal Fair Debt Collection Practices Act. The Plaintiffs’ damages are alleged to exceed $5 million.
The class action has been filed in the United States District Court, Middle District of Florida, in Tampa, Florida. The law firms of Forizs and Dogali, P.A. and Redding & Associates, P.A. represent Ms. O’Neal and Mr. Delgado in this class action. For any questions, please contact attorney Lee Atkinson at (813) 289-0700.

The complete press release and filing is available from

4closureFraud.org

http://4closurefraud.org/2011/01/24/florida-foreclosure-fraud-class-action-teresa-oneal-and-marco-delgado-v-bank-of-america/”> Florida Foreclosure Fraud Class Action | O’Neal & Delgado v Bank of America

According to Kate Berry at American Baker, “robo-signing ” concerns delayed thousands of foreclosures in the 23 states.   Now a new controversy is emerging. . .

The Notice of default.

The notice of default is the initial letter that a lender sends to a homeowner who is far enough behind on payments to begin a foreclosure. Every notice requires a signature.  In some cases, notices were signed by employees who did not verify the information.

Borrower attorneys are arguing that this is grounds to stop a foreclosure.

Christopher Peterson, dean and law professor at the University of Utah adds,

Foreclosure Timeline

“Whoever signs the [Notice of Default] needs to have knowledge that there is in fact a default,”.

As the NOD is literally the first formal step the lender takes  in the foreclosure process this practice is especially troubling.

Original Article: New Point of Foreclosure Contention: Default Notice from American Banker | Friday, January 21, 2011

Title Agents: Don't let an HOA take fees for a deal that did not close. Our real estate firm can help you get a refund.

If you are a title agency, and you paid Condo or HOA estoppel fees if the sale does not close, you are owed a refund.

Florida Law now requires the association or management company to refund Condo and HOA estoppel fees paid by a title agent when a transaction does not close. Unfortunately some management companies have refused to refund these fees – even with proper notice.

For this reason Redding & Associates, PA has partner with the Florida Land Title Association (FLTA.org) to help agents get these fees back where they have been with held. We have contributed with another real estate firm from Miami, several documents and a check list for title agents to use in order to get the refund they are owed from the HOA or association. You can find the list on the FLTA website.

We can assist in this matter when you run into an uncooperative association.  Call our Tampa real estate law firm today at 813-259-4401.

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:

Many home owner’s think that their troubles are over once they have succumbed to the foreclosure process, lost their property, and begin working to rebuild their lives.  However, the banks have the right to come back and seek to recover any deficiencies that remain after paying counsel, the court costs and then selling the property.  The deficiency, if any, is the balance remaining after the house has been sold.  Additionally, the risk of exposure to a deficiency judgment occurs in the Short Sale scenario if care is not taken, not just in a foreclosure.

For more on this topic see: Bank can go after other assets in Florida if you default on mortgage

Foreclosure Fraud: Open Letter to Florida’s Best Judge by Tampa By Real Estate Attorney

Pinellas County Attorney & avid foreclosure blogger Matt Weidner issues