Foreclosure Nightmares Continue

More and more articles have been published documenting the continuing problems with the foreclosure crisis. A few observations here about the relationships between the subject of these articles and how they are impacting the court system and homeowners.

The Florida court system is short of money. This is largely due to the reduction in the expected filing fees from foreclosure cases. The lenders are holding off on filing these cases. Banks have delayed filing foreclosures, largely due to the conduct of their foreclosure mills. Robo-signers have become a new term in our vocabulary as a symbol of massive foreclosure fraud. Statewide foreclosure firms are being investigated by the state, and the banks and servicers have been firing their attorneys. In some instances, the banks are suing the law firms for return of their court files, and the law firms are claiming they are owed millions of dollars in legal fees. There is a scramble to hire new law firms to take over hundreds of thousands of case.

No wonder pending cases are just sitting with the court and there are fewer foreclosures being filed than expected. Simple motions filed on behalf of the homeowner can delay a foreclosure for a year.

By the way, homeowners should seriously question hiring a foreclosure defense attorney who charges by the month to delay a foreclosure. A case can be delayed indefinitely with only minimal services by the homeowner’s attorney as a result of the problems facing the banks and servicers.

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