Trustee in Bankruptcy Joins Foreclosure Case

Alabama Bankruptcy Boot Camp graduate, Nick Wooten is representing the Trustee in a foreclosure case that it described in the Wall Street Journal.

A federal bankruptcy trustee this week joined forces with a Mississippi family in a lawsuit that may shed new light on one of the biggest players in the U.S. foreclosure system.

Much of the focus in recent weeks has been on U.S. banks, many of which have suspended foreclosure proceedings or initiated reviews in light of myriad paperwork problems. The case in federal court in Mississippi alleges to show how one of the biggest U.S. mortgage processors worked with firms to charge improper fees in foreclosure cases.

Foreclosure-related court cases now coming to light concern possible improper or incomplete paperwork in foreclosure proceedings. In Florida, for example, the attorney general is investigating whether law firms presented “fabricated documents” to courts as parts of foreclosure cases. But the case in Mississippi takes a broader view of the foreclosure industry. …

Earlier this month, U.S. bankruptcy trustee Locke Barkley asked the court for permission to hire a lawyer to represent her as a party in the Thornes’ lawsuit. Her job as trustee is to administer the estates of Chapter 13 debtors such as the Thornes, and the job includes scrutinizing debtors and creditors. Ms. Barkley reviewed the Thornes allegations and, believing they had merit, she joined the couple in an amended complaint this week.

A staff attorney for Ms. Barkley referred questions to Auburn, Ala., attorney Nick Wooten, who is representing her and the Thornes. Mr. Wooten said he understood he had brought “serious allegations” and that he intended to purse the case “vigorously.”