Although increasing numbers of courts are continuing to reject improper and fraudulent foreclosures, the Congressional Foreclosure Panel examination of mortgage services and foreclosure practices did not include foreclosure lawyers.
Lawyers are officers of the court; knowledge of applicable laws and civil procedure is not required from mortgage lenders, nor loan servicers. In states that require judicial foreclosures, lawyers are the ones who file lawsuits to seize and sell property; and lawyers are responsible for filing and recording foreclosure property deeds.
An investigation could prove helpful to sorting out whether improper and illegal foreclosure proceedings are linked to any self-dealing conduct disadvantaging lenders, investors, homeowners, and city governments.
Inadequate or questionable foreclosure can lead to useless property deeds that impede real estate sales. Increasing numbers of title insurance companies are refusing to cover foreclosed properties; and certain mortgage default claims, are being denied because of defective foreclosure proceedings.
Attesting to the need for federal probe of foreclosure lawyers, are the extensive investigations of Florida foreclosure lawyer David J. Stern. Irrefutable proof of foreclosure fraud at the Stern law firm caused Freddie Mac, Fannie Mae and other lenders to remove their foreclosure files from that law firm.
Despite years of flagrant foreclosure illegalities, the Florida attorney general took no action until evidence was made public by investigative reporters at Mother Jones. But not even the finest investigative reporter can prosecute fraud; and the only adjustment to that appalling foreclosure situation, was the lenders' retrieval of their files and removal of their business from the Stern law firm.
Perhaps Florida's longstanding problem of foreclosure fraud has been not addressed because of inability to acquire essential information and evidence from mortgage lenders and foreclosure lawyers. As reported in the news, the court denied the Florida attorney general's power to subpoena the Stern law firm.
In all likelihood, Mr. Stern’s files that were removed by lenders contained information helpful to prosecuting fraud, and determining vital elements about mortgages and foreclosure that need to be addressed or curtailed.
Foreclosure fraud is not limited to Florida. Among conclusions contained in the 127-page Congressional Oversight report, all 50 State Attorneys General have the task of determining the scope and factors of fraud, and report those findings to the Panel. Because the lawyers are likely to prevent the discovery process, I say to AG’s, ‘good luck with that’!
Additionally, investigating foreclosure lawyers could reveal legal loopholes that need to be changed for creating remedies for the mortgage disaster; and reveal how possibly tens of thousands of families have illegally lost their homes and are now living on the streets, and in tents and shelters. Without including an examination on the lineage of fraudulent foreclosure, the banking industry may be brought to its knees, and take American citizens with it. BUT THE REAL PERPETRATORS WILL ESCAPE –AGAIN.
**Also see: "FORECLOSURES -Keeping It Real About Mortgage Lenders, Borrowers, Attorneys" http://www.scribd.com/doc/193007851/FORECLOSURES-Keeping-It-Real-About-Mortgage-Lenders-Borrowers-Attorneys
* CASE IN POINT –FORECLOSURE MILLS, JUDICIAL FRAUD, CONSUMER EXPLOITATION http://www.scribd.com/doc/193013513/CASE-IN-POINT-%E2%80%93FORECLOSURE-MILLS-JUDICIAL-FRAUD-CONSUMER-EXPLOITATION
For every foreclosure, property deeds are filed and recorded by lawyers; and lawyers, not lenders, are the ones who file petitions to seize and sell properties in states that require judicial foreclosures. Moreover, lawyers are the persons who are required to know applicable laws and civil procedure.
The November 2010 report by this Oversight Panel proves that Congress understands the alarming economic and social factors associated with illegal foreclosures. The goals and interest of Congress to change the disastrous mortgage and foreclosure situation cannot be met without including an investigation into the function and practices of foreclosure lawyers in the mortgage crisis.
The following facts and reasons demonstrate why it is imperative for foreclosure lawyers to be examined as thoroughly as this Honorable Congress has done for the banking industry:
- With deliberate use of defunct lenders or lenders without “standing,” certain foreclosure lawyers intentionally execute false foreclosure proceedings. With the identity of a defunct lender, some lawyers carry out “simulated” foreclosure auctions, and instruct auction sheriffs to record property deeds into the names of defunct lenders.
- Some foreclosure lawyers purposely create delays –which are not authorized by their lender clients, of home foreclosures. Blatant misrepresentation to conceal those delays often succeeds by falsely portraying to the courts and to their clients, that homeowners caused the delays through schemes to get ‘free houses’. However, the reason that some free houses were ordered by judges to be awarded in certain cases was due to egregious fraud on the courts and sanctions against those lawyers. These lawyer falsehoods cause courts to be hostile to homeowners –also known as deadbeats, when such fabrication enable foreclosure lawyers to engineer foreclosure litigation which generates additional legal fees from lender clients.
- Various illegal activities, as well as actionable wrongs committed by foreclosure lawyers give rise to lawsuits for damages. Most of those wrongs are malpractices that are concealed from lender-clients and Investors, who incur the legal tabs. An example of conduct for which foreclosure lawyers are being sued is, Unfair Debt Collection Practices associated with acts of fraud, civil torts, and unconstitutional wrongs.
- Certain foreclosure lawyers file appalling, fraudulent proceedings in U.S. bankruptcy courts –including deliberately false “Motions to Lift Automatic Stay,” on behalf of non-existent lenders, and lenders that do not own “secured interests” in mortgage notes. Fraudulent bankruptcy filings by foreclosure lawyers violate federal bankruptcy law, illegally conceals the fact of “unsecured” mortgage debt, and unfairly deprives bankruptcy debtors from specific rights under Bankruptcy Statutes, namely, “avoidance.”
- Some foreclosure lawyers obtain unjust profit from foreclosure fraud when they falsely file “deficiency judgments” against former homeowners. Unconscionable deficiency judgments from “simulated” auctions include foreclosures that were executed in the name of non-existent lenders. Use of defunct lenders’ identity also enable ‘straw buyers’ to “credit bid” and walk away owning those homes!
- Until recently, courtroom judges have utterly disregarded the legal requirement of “standing.” Instead, almost all judges formerly demanded that homeowners cure their mortgage arrears or their homes would be auctioned. Most judges still ignore laws of standing, and thereby facilitate the ease of foreclosure fraud, and the injustice of numbers of people becoming illegally homeless.
In the same manner, as mortgage lenders have been examined concerning its mortgage and foreclosure activities and practices, foreclosure lawyers must also be made to explain their foreclosure performances.
Lastly, please allow me to suggest to you a testimonial: “Foreclosure Fraud Assault - A Cry For Help”