Florida Foreclosures Delayed Due To Lack Of Lawyers

An article in the Wall Street Journal shows the massive issues foreclosures are having in the 23 states that require the foreclosure to go through the judicial process including Florida. There have been many other articles and stories on TV that have also discussed these issues.

Due to the Robo-Signing scandal the private banks and the Government-Owned Mortgage Giants including Fannie Mae and Freddie Mac fired the law firms that were handling a huge number of their foreclosures.

One firm, The Law Offices of David Stern handled about 20% of all foreclosures in Florida, and were fired by the lenders. The law office now tells judges they cannot do the paperwork required to withdraw from 100,000 cases. Attorney General Pam Bondi is investigating whether the law firm forged notarized documents.

The effect of all this unfortunately is that it is holding up foreclosures which can cause a worsening of the owners credit scores, and can also delay or nullify loan modifications and may result in some foreclosures which are already in the process to have to start over, costing the lenders, investors and the U.S. taxpayers many billions of dollars.