New York Judges Hold Foreclosure Lawyers Responsible For Filings

As foreclosure cases continue to pour into courts, judges in New York are holding their fellow legal professionals accountable for their role in perpetuating foreclosure fraud.

Judges in the state say foreclosure lawyers have filed often ludicrous paperwork on behalf of their clients, which Nassau County District Court judge, Scott Fairgrieve, told the New York Times, "reflects poorly on the profession as a whole." Another judge referred to a lawyer's filings as "ludicrous," among other jabs.

In response to lawyers filing shoddy and sometimes fabricated paperwork, New York, as well as Florida, courts are now requiring lawyers to swear that their foreclosure paperwork is accurate.

The New York bar association protested this measure. A common sentiment among foreclosure attorneys was expressed in the online legal publication, Law Forward:

"One attorney called the requirement "preposterous," noting that if every criminal lawyer had to swear that their clients were telling the truth, "no one would practice criminal law."

But some of the larger law firms may have overseen the signing of documents without sufficient examination or proper notarization, according to the New York Times.

This behavior was documented in Florida recently in a 98-page powerpoint presentation on foreclosure fraud by the Florida Attorneys General. That investigation found that some law offices functioned much like the robo-signing lenders they were representing, according to Daily Finance.

The measure has had an impact on the number of foreclosure claims attorneys have been filing in New York courts. In the month after courts began requiring attorneys to stand by their paperwork, foreclosure filings in New York dropped to 100 between December 6-12 from 800 between Oct. 18-24, according to Law Forward.

Comments

[lawgrace]

11:59 AM on 01/18/2011

Across the country, judges should cease allowing foreclosure mill lawyers to use courtrooms for committing fraud and self-dealings that --instead of “return” property being recovered by lenders-- enable lawyers and straw buyers to unlawfully acquire commercial, as well as residential real estate property.

By means of intentional fraudulent judicial pleadings, certain lawyers file fabrications in civil courts and bankruptcy courts on behalf of purported lender-clients; and some filings are via defunct mortgage lenders' identities.

For decades, it has been PROFITABLE and FACILE for them to use judicial systems to accomplish multiple and various foreclosure fraud, while unlawfully rendering families homeless, and creating BLIGHT; and mortgage lenders (receive their with mortgage-default insurance, IRS write-offs). Ultimately, after repeated flips, homes become sold to Freddie Mac.

Lawyers who engaged in foreclosure fraud unconscionably access "deficiency judgments" against homeowners although the reason for “deficiency” is because straw buyer acquaintances place unlawful "credit bids." After sham foreclosure actions, worthless property deeds become recorded which hampers title insurance.

Anyone telling people to simply move out NEEDS a wake up call as to what really goes on. Hopefully people continue signing and sharing the petition, “Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers” @ http://chn.ge/eU2zAm, who file foreclosure proceedings in civil as well as bankruptcy courts. And hopefully consumers will heap on offices of Attorneys General, information / evidence about foreclosure and judicial wrongdoings. *SEE: “Commentary on: “Emerging Battleground on Mortgage Abuses: Foreclosure Mills” @ http://t.co/riJXgou.

[Ron10s]

10:59 AM on 01/17/2011

When is someone in Kansas going to have the balls to look into this. Seems like the only people that will take action is Florida, CA, NY and MA. Where is a national class action against Chase and the big boys. OH YEAH, now we have a Chase boy working with Obama. He probably invests in foreclosed homes on the side from Jamie Dimon.

[ligligl]

05:23 PM on 01/13/2011

THE DEVIL TAKE THE HINDMOST!
When will enough be enough? Rapacious banks and mortgage brokers have waylaid and raped the middle class (again), and still it goes on. Fraudulent loans, fraudulent paperwork, fraudulent foreclosures. Obama promised relief and instead there is a bloodbath. Obama wants us to pull together? Where is the evidence that Amerika is anything other than every man for himself and the devil take the hindmost. There are too many that fall into that class: the hindmost, and these are but a part of the throwaway economy. Banks raped you? Suck it up! Courts raped you, suck it up! Retirement gone? Suck it up! Blessed be those who suck it up! For they shall be known as SUCKERS!

[Jill1975]

04:25 PM on 01/12/2011

The banks would not have an incentive to fraudulently foreclose on houses if the govt wasn't paying them for the cost of underwater mortgages . The banks end of getting all kinds of fees from the owner, fees that banks maximize through dishonest practices plus full payment of the balance on the loan by the taxpayers.

[dwhuston]

08:37 AM on 01/13/2011

Ummm so its the governments fault that the banks are presenting fraudulent foreclosure paperwork and stealing peoples homes?

[JStading]

10:47 AM on 01/13/2011

Yep - what risk do they really face?  Are we going to fine them the money we gave them to keep them afloat?  If we do, the fine will either be too little to care about or it will be so large that a second bailout will be triggered.  Either way, we end up paying for it thanks to our stupidity.  The answer here is for the states to pass laws creating a real private cause of action whereby homeowners can use banks for both punitive damages and the costs of the lawsuit where intentionally or negligently deceptive paperwork is submitted in a foreclosure proceeding.  Until that happens, it saves too much money to cut corners.

[lcr999]

02:53 PM on 01/12/2011

I would think a $10,000 fine for every faulty mortgage case filling (repeat it if they refile faulty again) and a $10,000 fee for serving an eviction notice would help straighten things up, or at least fix the state's budget crises.

[lawgrace]

02:26 PM on 01/12/2011

Consumers Should Take More Active Roles Concerning Mortgage and Foreclosure Frauds http://ning.it/gA4Vha

“. . .Instead of hope and demand that out-of-control judicial and political systems somehow right itself, Americans need to DO our part –or at least weigh what IS our part. Pro-action accomplishes better results than (notwithstanding any justification) posting commiserating, blaming, or angry comments and statements on the Internet regarding our nation's mortgage crisis. Ethical lawmakers, activists, news media, and particularly investigative reporters who put their safety on the line, are not solely responsible for a better America.

Contained in the petition, “Request for Congressional Foreclosure Panel to Examine Foreclosure Lawyers” @ http://chn.ge/eU2zAm are details and illustrations about foreclosure frauds being carried out by some lawyers who file foreclosure proceedings in civil as well as bankruptcy courts. Individual consumers can help law enforcement to curtail and / or prosecute frauds associated with foreclosures by providing facts and information similar to descriptions in that petition. (It is certainly the BETTER ROUTE than people copying / buying various publications via the Internet, and thinking that they can take on court systems –particularly in light of the few grounds for opposing foreclosures successfully, instead of delaying them.)

Hopefully people continue signing and sharing the petition. But also hopefully they will also heap upon offices of Attorneys General, information / evidence about foreclosure-judicial wrongdoing.

*Additional discussion about foreclosure illegalities at: “Commentary on: “Emerging Battleground on Mortgage Abuses: Foreclosure Mills” @ http://t.co/riJXgou.

[lawgrace]

01:12 AM on 01/12/2011

All across the country, judges need to cease allowing courtrooms to be used by certain foreclosure mill lawyers to commit fraud, and self-dealings that –RATHER than property returned to the lenders, enable lawyers or their straw buyer acquaintances to unlawfully acquire distressed property.

Specifically, these lawyers are actually engaged in real estate racketeering through intentional fraudulent pleadings that they file in civil courts and bankruptcy courts on behalf of purported lender-clients –and some are filed via names of defunct mortgage companies.

For decades, it has been PROFITABLE, and FACILE to make use of judicial systems to accomplish multiple and various levels of foreclosure fraud, while also unlawfully rendering families homeless; and mortgage lenders and banks (that receive their with mortgage-default insurance and IRS write-offs), never get the homes. Ultimately, after repeated flips, the homes become sold to Freddie Mac.

Lawyers who are engage in willful foreclosure fraud also unconscionably access "deficiency judgments" against homeowners even though the reason for the deficiency is because their straw buyer friends place unlawful "credit bids." And the lawyers record worthless property deeds after sham foreclosure auctions that impedes title insurance. The list goes on!

Anyone telling people to simply move out NEEDS a wake up call as to what's really going on –including the cause of longterm blighted communities. Foreclosed homes that 'go back' to lenders become put on the market; homes entangled in foreclosure fraud have various channels and outcomes, always unlawful.

[deadfed]

08:23 PM on 01/11/2011

you can go to MERS website and there's a place to type in your address and it will tell you supposedly is the servicer and the investor on your note...my blog has a link to this if you want to check it...http://deadfed.com/

[cats530]

02:05 PM on 01/12/2011

Thanks for the info. But anything MERS claims is true must be verified, verified, verified.

[CPAwADD]

08:08 PM on 01/11/2011

But some of the larger law firms may have overseen the signing of documents without sufficient examination or proper notarization, according to the New York Times.

The problem is that the number of documents signed in the time alloted guaranteed that there was insufficient time for meaningful review. The signature is supposed to mean something; you'd think law firms would understand that.

[zombywulf]

07:52 PM on 01/11/2011

"One attorney called the requirement "preposterous," noting that if every criminal lawyer had to swear that their clients were telling the truth, "no one would practice criminal law." Just because we tried to foreclose on Jimmy Hoffa's grave...................

[ligligl]

05:13 PM on 01/13/2011

Lawyers Lie?

[dadw5boys]

07:41 PM on 01/11/2011

Homeowners end up Homeless in the streets and Lawyers BREAKING the laws get a slap on the wrist ????

MERS walks away with no warning at all when they are committing Fraud and Collusion to illegally take a Home ??????

[HelloWerld]

06:48 PM on 01/11/2011

It's about time.

[deadfed]

03:23 PM on 01/11/2011

on my blog, http://deadfed.com/, we've published a story that lets you type in a address to find out who is claiming to be the investor on your mortgage note...good luck...

[lrobb]

05:50 PM on 01/11/2011

There appears to be a problem with your link.

[halfpricefaustian]

02:58 PM on 01/11/2011

I agree it's preposterous. Imagine, holding lawyers to a standard of competence and honesty! What is the world coming to?

[claudiam]

02:30 PM on 01/11/2011

Good for the judge! Maybe there is hope for America. claudiatucson.