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.

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

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.

Florida Attorney General investigates poor process service & fraud

Originally Posted on 4ForeclosureFraud.org

MORTGAGE FRAUD:

Chief Justice of the New Jersey Supreme Court entered an Order To Show Cause “In The Matter of Residential Mortgage Foreclosure Pleadings and Document Irregularities” in a major civil action . Six major mortgage  companies and their bank-owners were ordered to show cause why the Court should not suspend their rights to foreclose.

Clearly cases like this will be popping up and could very well unhinge the real estate world. Look out title insurers, here come the claims. I can think of at least one underwriter that should have listened to me a few years ago.

Here is the original article – http://4closurefraud.org/2010/12/21/mortgage-fraud-allygmac-bofa-citi-chase-onewest-wells

Originally posted on TBO:

Curious Foreclosures Overbilling - image TBO

Excerpt:

Pasco County  – Circuit Judge Susan Gardner decided to take a closer look at her foreclosure cases after law firms were accused recently of overbilling and forging documents.

She doesn’t like what she’s finding – a mountain of fees to serve notice of foreclosure lawsuits to homeowners and to people who don’t exist.

http://www2.tbo.com/content/2010/nov/18/190741/judge-wants-answers-to-foreclosure-document-fees/news-money/