Who’s to Blame for the Mortgage Mess? Banks, Not Homeowners

Another excellent article by Abigail Field in DailyFinance. As the foreclosure crisis has escalated over the past several months, one overarching debate has been about who bears the most blame: homeowners or banks? After everything I’ve learned and written about the foreclosure mess, my verdict is: The banks are responsible for 90% of the problem, troubled homeowners 10%. Yes, every …

US Trustee Sides With Borrowers in Foreclosures With Questionable Assignments, MERS

Boot Camper Ronald J. Kim is in the news.  The US Trustee sided with his argument for his client.  From Naked Capitalism. As we’ve suggested, a not-well-recognized effect of the widespread publicity on robo-siging abuses and more recently, the widespread failure of securitization industry participants to adhere to their own agreements is more pushback in the courts. It takes a …

The Foreclosure Mess: Florida Judges Can Do Better

Via Abigail Field of DailyFinance calling Florida judges to task. Unfortunately, not all judges are responding to the foreclosure mess this way. Those in Florida have been particularly notorious, and new rulings show at least some members of the Florida judiciary seem more committed to speeding foreclosures through to completion than anything else. For example, Florida’s infamous “rocket dockets,” in …

Novice Florida lawyers draw suspicion in foreclosure mess

From the Palm Beach Post. Nearly half of those working at the state’s four largest foreclosure firms have practiced law for less than three years. Recently out of law school and looking for work, scores of young Florida attorneys found steady paychecks in burgeoning firms whose business is based on repossessing the American dream. Today, more than 260 attorneys work …

Defense lawyers raise new issue: ‘Robo-verifiers’

Boot Camper Margery Golant is featured in a Daily Business Review article on ‘robo-verifiers. Lenders and their law firms are violating new procedures implemented by the Florida Supreme Court intended to address a controversy over botched foreclosure cases, according to attorneys for homeowners. After a national foreclosure scandal that resulted in a moratorium, new procedures implemented by lenders and their …

Florida Judge Cancels All Foreclosure Sales in His Division Through Year End

Via Naked Capitalism. Even though the motivation for this order is not clear, it may nevertheless be significant. Many judges have taken the view that they have no latitude to act on behalf of defendants who do not contest their cases, and some have taken the unusual step of expressing concern that procedural abuses have risen to a level where …

Iowa AG Miller Commits to Prosecution of Bank Execs, Seeking Principal Mods

Via Naked Capitalism. We asked readers to sign a letter to Iowa attorney general Tom Miller, who is leading the 50 state probe into foreclosure and mortgage abuses. Here is the official report from National People’s Action, which was part of the group that met with Miller earlier today: Leader of 50 State Foreclosure Probe Tells Struggling Homeowners: “We Will …

False Attorney Signatures Cast New Doubts on Foreclosures

Via ProPublica by Sasha Chavkin Dec. 13, 2010 Many foreclosures have been thrown into question because of flawed documentation such as inaccurate affidavits describing a mortgage’s history. But three recent court cases point to another type of flaw in foreclosure filings that could place thousands more cases in doubt: false attorney signatures on court documents. Experts said that foreclosures that …

The Day the LPS Music Died

Reuters published a must read article today, Special report: Legal woes mount for a foreclosure kingpin, in which they describe how a Reuters investigation shows that LPS’s legal woes are more serious than their CEO, Jeff Carbiener, let on. Public records reveal that the company’s LPS Default Solutions unit produced documents of dubious authenticity in far larger quantities than it has disclosed, and over a …