Bootcamper Cautions Purchasers in Foreclosure Sales

Bankruptcy and foreclosure defense attorneys generally have occasion to look at the foreclosure process from the standpoint of the homeowner facing foreclosure, but our clients aren’t the only ones at risk in the foreclosure game.  Last week, bootcamper Richard Gadreau took the time to explain the risks to another pool of possible victims:  those who in good faith purchase homes in foreclosure sales.

In a February 8 Huffington Post article, Gadreau warned prospective buyers that “securitized mortgages can be as hard to kill as cockroaches in a rundown apartment.”  Cases like Ibanez represent significant victories for individual debtors and, we hope, for cleaning up the sloppy, deceptive and altogether destructive practices of the foreclosure industry, but they also have their casualties.  Anyone considering purchasing a foreclosed home should be aware of the risks, particularly since the Florida Bar went out of its way earlier this month to let plaintiffs’ attorneys in the foreclosure industry know that they have an obligation to report false documents and testimony even if the case is closed, the foreclosure complete and the home has been sold.