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Pesky Foreclosures Threaten Housing Recovery in Florida

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  • William Matz | | 18 Jan 2013, 04:54 PM Agree 0
    The reason for the "glacial" speed now was the discovery that the prior "rocket docket" (where a judge would see hundreds of foreclosure files in a short session) was being massively abused by lenders that were filing forged and fabricated documents. The process was so flawed that lenders could even foreclose on homes on which there were nor mortgages. These abuses led to a moratorium and then much more closely monitored cases. Lenders have no one but themselves and their attorneys/accomplices (e.g. Stern Law Firm).

    Similar situation in NY. A chief judge got so fed up with the false paperwork being filed with the courts that he began requiring affidavits from lender execs and bank attorneys that they had personally reviewed the file and found the grounds for foreclosure.

    And then there are the thousands of foreclosures of active military in violation of the SCRA.

    In all of these the banks claim the fault is administrative mixup. (The San Francisco Recorder found that over 80% of foreclosures had flawed paperwork.) Yet banks seem to have no problem keeping track of billions of credit card transactions.

    The sad thing is that all the lender misconduct will ultimately cost borrowers, as investors will shy away from mortgages due to perceived heightened risk.
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