It’s working, folks. I’ve told you how, one by one, judges are having epiphanies and forcing banks to prove a legitimate paper trail — and standing to sue — before they foreclose on people’s houses.
Now, the Florida Attorney General has launched an investigation into foreclosure mill law firms which stand accused of filing foreclosures in court based upon fraudulent and forged documents as well as the companies that create these documents.
From a press release by the Florida AG’s office:
The Attorney General’s Economic Crimes Division is investigating whether improper documentation may have been created and filed with Florida courts to speed up foreclosure processes, potentially without the knowledge or consent of the homeowners involved.
-snip-
Because many mortgages have been bought and sold by different institutions multiple times, key paperwork involved in the process to obtain foreclosure judgments is often missing. On numerous occasions, allegedly fabricated documents have been presented to the courts in foreclosure actions to obtain final judgments against homeowners. Thousands of final judgments of foreclosure against Florida homeowners may have been the result of the allegedly improper actions of the law firms under investigation.
For those of you who live in non-judicial foreclosure states, getting your home state AG off his or her duff to look into this, may be the only hope. That, and lobbying your legislature to convert into a strict judicial foreclosure system.
A few well placed letters to your state AG, your local state legislator and your local newspapers may be in order.
Hint. Hint.
[Earlier posts in this series and related links at FDL's Foreclosure Fraud Resources]




14 Comments




Thanks, Cynthia. This is good news. Will there be any benefit to those who have already lost their homes?
Thanks Cynthia!
This is such an outrageous scandal on top of all the other scandals…. HAMP…. Fannie sueing “strategic” defaulters…
Seems everywhere you turn there’s a predator. I feel bad for struggling homeowners.
This is great news…but for those in non-judicial foreclosure states, as you said:
Is it too pessimistic to observe that Republicans control the legislature, and that the system is the way it is because they people who run things like it that way?
CASE IN POINT: FORECLOSURE MILLS, JUDICIAL FRAUD, CONSUMER EXPLOITATION, GOVERNMENT SHAMS
“Media headlines are abuzz with what is going down with foreclosure mills in Florida, particularly foreclosure bill baron, Attorney David J. Stern. Unscrupulous foreclosures are more criminally exploitive than what becomes reported; it is not easy to detect nor prove. Even so, appalling collection abuses have resulted in . . .” @ http://www.lawgrace.org/2010/08/14/foreclosure-mills-judicial-fraud-consumer-exploitation-government-shams/
Badly written, changes subject in the middle of the first paragraph, too many bold and underlined items.
Please review and make it more readable.
Hint Hint.
CA could be changed with a Ballot initiative. Needs work. Also convert from a note & trust deed to a mortgage state.
Good news
I don’t know. The AG is not acting as a lawyer for homwonweners. he’s doing a criminal investagtion to see if there has been fraud and forgery.
I suppose if you lost your home and could later prove it was through fraud and foregry you could sue the law firn (wich will be broke by then) or maybe even the bak , if you could prove the bank knew about it and conspired in it.
But we are many months away from that
Synoia
I suppose I am to THANK you FOR an enGlisH lesson –but. Getting to your DIRECTIVE that I should re-write my comment, I suggest that you simply ignore it. I somehow feel that you would not be able to relate, not factor in my 5-year struggle (mine and others), as contributory to the passion in which I write; nor contributory to the (COMMON KNOWLEDGE) unfair court systems in which we have sought redress for foreclosure frauds, coupled with the fact some of us are yet New Orleans-displaced unjustly because of foreclosure fraud. (It’s hard to live as well as write about, but I am NOT asking for your sympathy. Perhaps it was too much for you to even look at my website. That’s okay.)
oN the other hand, I hope that you are not among the kind of people who only read articles and comments about social problems / troubles (and even take stabs at us), but never read articles / comments and become prodded to do something to help the people being written about. Again, as for whatever part of what I’m saying you don’t understand, please go ahead and ignore.
Incidentally, this is the 2nd time I have received a hint of condescending feedback after posting to Ms. Kouril’s articles. However, I AM NOT ALL DESCENDED.
Also Synoia,
Did you take the time to annotate those NOT LESS THAN 7 errors in the response that the author of this article posted to “Twain”? Irrespective of errors, I understood perfectly what was being communicated; there was no need for Ms. Kouril’s reply post to be re-written. I know that comments are not expected to be professionally written, and often consist of typos. Before I would even think of disdaining what anyone had to say, I give my best attention to what is being conveyed –even if it’s anguish.
Simple as this – your comments are very difficult to read.
I have to comment…cause I always do…have been invalidated for so long on this issue of illegal behaviors. I witnessed it all first hand. However the story is so complicated that folks eyes glaze over and even my family says “you had to do something wrong here to get them to treat you this way”. It feels like rape when you are going through it. One more addition to this “mill’s” issue. In order to do this stuff they had to violate RESPA and TILA laws…cram down legislation would have given us this truth much sooner. But then Obama would have had to deal with the fact that millions of minorities, elderly and women were robbed of there homes over the last 8 years. How do you remedy that?
In my case, (and many others as I have posted many links to the fraud stories). My bank was homecomings financial, now GMAC. Here’s the scheme. You become a month late. The only option given is to refinance the late payment at 23% interest to be paid in 5 or 6 installments on top of your current payment. (if you are having trouble this only makes it worse). Then when you can’t do that…they refuse the payment you CAN make and once you are behind two months you go into foreclosure…lickety split. (I had a conventional loan once and while going through divorce we were 3 months late, and just repaid it once our ship was straight-none of these consequences).
Then the next step is that they quit communicating with you. This is a violation of RESPA law. They must maintain open communication and try to work out a plan. They refuse any and all payments unless it’s the full pay off. They send you laters saying your loan has been “escalated” which means you are to pay the amount in full within 30 days. (they don’t mean it…but it scares you-sometimes they mean it). Then they begin charging fees…this the trip, the grenade. They charge you fees to cash your checks, they charge property inspection fees, they charge legal fees and just a column of miscellaneous fees. They don’t tell you anything about these fees. They don’t respond to your calls, letters and faxes. You are forced to enter an I.D number and relegated to voice mail per your account status. This is not legal.
While they won’t speak to you or communicate you are racking up fees and back payments. They won’t even tell you when your foreclosure is until about two weeks before the date. They let this go for about 6 months to rack up as many fees as possible. You are sent to a lawyer…I dug and dug to get this info..and could only get it by going to bankruptcy lawyers who had access to postings that I could not find on my own. These lawyers directed me to the lawyer handling the foreclosure…which was a lawyer in a MS (I am from NE and my lender was from TX). The lawyer does not return calls for the pay off amount. Left message after message.
When they won’t speak to you, you get desperate and you find these “foreclosure specialists” who say they will “work out a plan for you, they can talk to your lender even if they won’t speak to you”. Meanwhile this industry would not exist if these lenders were communicating with people while in foreclosure. During a big hearing, one of the spokespeople for the industry said that the big problem was that people did not try to work out these problems with their lenders and did not respond to letters to call and work with the lender. He said that 50% of the people in foreclosure never call. This was bogus and I screamed about the lie…the industry knew darn well what it was doing by refusing communication. (not supposed to do that..so they send letters telling you to call, but they don’t return your call).
The foreclosure companies (probably owned by the finance industry) cost 1500.00$ to talk to your lender. They say they will negotiate a package to save your home. Then a two weeks before your sale date you are finally given the pay out amount on your loan, which will likely have increased by a third. And while they were refusing six months of payments, you better have put them all in savings to go on top of the fees. (I did…but could not make up the fees). Then when you are shocked at the pay out, they offer to refinance what you owe on top of your current payment at 23% interest. The minute that you are late…one day, the foreclosure process starts AGAIN…with more fees to pile on top.
Filing chapter 13 might seem like a fix, but in my case they literally did not post my payments and sued to get out of protection twice. Both times I could prove my payments. They put my escrow payments toward fees and fines before escrow which accrued more fees and fines. All of these things cannot be controlled by me. Just like someone stealing money out of your pocket PLUS taking your home.
At the time I was a single mom with four kids and a beloved dog. We lived up the street from the school in a modest house. There was no way I wanted to move to an apartment. Mostly I could not bear the kids losing the dog. I have continued to fight and still must sue them for a valid pay off at the end of my bankruptcy. My bankruptcy has been paid through the court…my arrears covered, but GMAC says I owe 10,000.00$ in fees that accrued while I was in chap. 13. I made all payments to the court and to them.
When this truth comes out…it is so much darker than most people know. It feels like terrorism. It feels like rape and robbery. And it was directed at minorities, elderly and women.
Had to tell it…the truth is slowly coming, but it’s not pretty.
I had paragraphs in there at one point…sorry it’s so hard to read.
Hi Cynthia I need legal advice how can I contact you I’m on facebook