Florida Foreclosure Defense Lawyers Blog

Now that the Law Offices of David J. Stern and Ben-Ezra & Katz are no longer Florida's foreclosure kings, law firms from other states are opening offices in Florida to seize some of Florida's foreclosure business that is now up for grabs. New foreclosure filings slowed significantly last year while foreclosure processing procedures were reconstructed by Fannie Mae and Feddie Mac.

The largest of the new firms, McCalla Raymer, based in Atlanta, GA, has opened four offices in Florida housing 21 attorneys in the last year. Other out-of-state firms include Brock & Scott from North Carolina, Ablitt Scofield from Massachusetts, Mark J. Udren & Associates from New Jersey,; and from Atlanta Aldridge Connors, Pendergast & Associates, and Phelan Hallinan & Schmieg. Most have chosen Fort Lauderdale as their base in South Florida.

Now that Fannie and Freddie have taken necessary steps to ensure all of its foreclosure paperwork is in order, they are now ready to begin filing foreclosures again. In addition to restricting their foreclosure processes, the mortgage giants have also changed the matter in which their hire law firms in Florida to file their foreclosures. This time around, in an attempt to not create another David Stern or Ben -Ezra, they plan to spread out the work among many firms and are even sitting in on attorney interviews. They are taking a more active role to make sure these firms follow proper procedures. Now included in Fannie Mae's contracts with loan servicers, the servicers will be responsible for monitoring and managing the conduct of foreclosure proceedings.

Facing a Florida Foreclosure Lawsuit, can be a very stressful and confusing period. Contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today. A Jacksonville Foreclosure Lawyer may be able to help you navigate through this difficult time and put you in the best financial position possible for your future. The initial consultation is free.

In 2006, Fannie Mae hired an outside law firm to investigate allegations of misconduct by the firms it hired to file its foreclosure actions. The outside investigation revealed its foreclosure attorneys in Florida were sacrificing accuracy for speed by filing fraudulent court documents. Fannie Mae was put on notice in 2006 that its foreclosure attorneys working on their behalf were involved in "unlawful" practices, but sat by and did nothing.

Many Florida foreclosure defense attorneys are in agreement that further abuses by attorneys in the so-called foreclosure mills could have been detected and possibly prevented if Fannie Mae would have strengthened its oversight over its retained firms. Last fall's revelations of "robo-signed" documents and the chaos that followed could have been prevented.

The key players were the Plantation-based David J. Stern firm and Ben-Ezra & Katz in Fort Lauderdale. The Law Offices of David J. Stern was Fannie Mae's largest hired firm for Florida foreclosure cases. David J. Stern was fired by Fannie Mae in November 2010, after ex-employees divulged information state investigators that signatures on notarized documents were habitually forged, notary stamps were passed around to non-notaries, assignments of mortgages were created after foreclosure judgments were entered, and flawed files were hidden from federal auditors. David J. Stern, soon-there-after in March, laid off hundreds of employees and shut down its foreclosure practice. Around 100,000 foreclosure cases were left in a state of uncertainty as they waited to be reassigned to different law firms.

In February 2010, Fannie Mae fired Ben-Ezra & Katz. Ben-Ezra & Katz admitted they had found "technical paperwork issues" with is foreclosure files but maintained, "there is no issue of whether the information in the affected files is correct."

If Fannie Mae had practiced better oversight over their foreclosure cases in Florida and across the U.S., the broad reaching negative consequences we are experiencing today potentially could have been prevented. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Defense Lawyer today to explore what foreclosure options may be available to you.

The term "too big to fail" has been used to describe the strength of banks entrenched in the mortgage foreclosure battle with homeowners. Florida has become a sort of poster child in foreclosure cases where more residents enter foreclosure each day. For now, the momentum seems to be shifting in favor of the consumer especially in light of a new development from the Florida Bar charging Florida attorneys with the duty to disclose shoddy foreclosure paperwork to the Court.

This development was reported in a Florida Bar News article which details a meeting of the Bar's Professional Ethics Committee at the Bar's Annual Convention in June. The committee voted 20-6 to uphold a Bar staff opinion advising a lawyer representing a bank that the duty existed.

The lawyer posed this scenario to Bar staff: a bank uses two employees to review and prepare affidavits necessary in a foreclosure. Employee one personally verifies the figures in the affidavit and signs off in the presence of a notary. Employee two uses an assistant to verify figures but signs off as if she personally reviewed them, sometimes not even in the presence of a notary. The lawyer wanted to know if he was required to report this client's activities. He also asked whether that duty remained when the disclosure would not change the outcome of the case, or if the case was closed or pending.

The Ethics Committee responded by saying that it doesn't matter what stage the case is in, but that Florida Rule of Professional Conduct 4-3.3 Candor Toward the Tribunal makes shoddy documents "false evidence", and proper for disclosure without condition. The opinion also cites Rule 4-1.2(d) prohibiting assistance of criminal or fraudulent client conduct, Rule 4-3.4(b) that prohibits fabrication of evidence or assisting a witness in false testimony, Rule 4-8.4(a) prohibiting violation of the Rules of Professional Conduct or assisting another in doing so, Rule 4-8.4(c) barring an attorney from conduct that constitutes dishonesty, fraud, deceit, or misrepresentation and Rule 4-8.4(d) which prohibits a lawyer from conduct prejudicial to the administration of justice as violations for a failure to disclose faulty foreclosure docs.

The Bar's opinion concluded that the attorney should advise the client to correct the affidavits or that he would have to withdraw and disclose the issue to the Court. The attorney also should withdraw from further representing the client in cases where they refuse to disclose the truth, being careful to make minimal disclosures when doing so.

This is just the latest development in the fight against some of the unscrupulous tactics that many banks and their attorney's have been perpetrating for a number of years. A Jacksonville Foreclosure Lawyer hopes this latest measure by the Florida Bar stops many of those actions.

Ben-Ezra & Katz and Lender Processing Services, Inc. (LPS) have been sued in the Northern District of Florida. The lawsuit alleges that LPS used its relationship with certain mortgage servicers to to refer foreclosure related business to particular law firms. The law firms, including Ben-Ezra & Katz, would then pay an illegal kick back to LPS. The kick back fee would then be re-categorized as "administrative fees" and passed on to the homeowner in foreclosure. The lawsuit alleges that when LPS created these kick back agreements they illegally split attorney's fees in violation of the U.S. Bankruptcy Code. Additional claims in the lawsuit include fraud on the court, breach of the uniform mortgage covenant, unauthorized practice of law and civil conspiracy. The lawyer that filed the lawsuit, Alabama-based Nick Wooten, is seeking class action status for the case.

The law firm of Ben-Ezra & Katz is shutting down its operations. This was confirmed by a spokesperson of the firm. The firm has given layoff notices to 146 of its employees. Additionally, the company will layoff 8 of its employees that work for the title company run by the firm. As recently as February of this year, Ben-Ezra & Katz had almost 600 employees. The company's demise began in February when the company lost all of its foreclosure business from Fannie Mae due to the mishandling of Fannie Mae's foreclosure files. Ben-Ezra & Katz is the second Florida foreclosure mill to shut its doors in the past two months. The law offices of David J. Stern shut down its foreclosure operations in late March.

Update: The Palm Beach Post has more information on the firm

Chase Home Finance has filed a lawsuit in federal court in Fort Lauderdale against Ben-Ezra & Katz. Ben-Ezra & Katz was the former legal counsel for Chase. The lawsuit alleges that Ben-Ezra & Katz has refused to hand over files from Chase's foreclosure cases. The Mortgages and Promissory Notes contained in these files are valued at over $400 million. If Chase cannot recover these files from the law firm, Chase will not be able to proceed with any of the cases that are currently pending in court. The lawsuit requests that the court issue a temporary restraining order and a permanent injunction requiring Ben-Ezra & Katz to hand over the foreclosure files. Chase claims that the contract between the two parties had a clause that required Ben-Ezra & Katz to return the files immediately after the contract terminated. Ben-Ezra & Katz claims that it has not handed the files over to Chase because Chase owes the law firm more than $5 million.

President of the Florida Bar, Mayane Downs, says that the Bar has seen an increase large increase in the number of complaints and investigations of attorney misconduct as a result of foreclosure fraud and some may pay the ultimate professional price, disbarment. The Florida Bar, the body responsible for monitoring and investigation attorney conduct, has seen the number of fraud cases and the number of attorney's under investigation rise from 28 investigations on 23 attorneys in 2010 to 222 investigations on 157 attorneys open so far in 2011.

The substance of the investigations are not made public but complaints normally range from forged signatures on court documents, forged notarizations on documents and other illegal and unscrupulous activities designed to speed up the foreclosure process. These investigations do not include the wide-ranging investigations into the 8 Florida "foreclosure mills" including the now defunct Law Offices of David J. Stern. Many foreclosure defense attorneys question why no one from any of the "foreclosure mills" has yet to be suspended or face professional sanctions as a result of the investigations.

Many attorneys didn't believe that the media allegations of foreclosure abuses would result in official investigations by the Florida Bar but that appears to not be the case. If you are facing a Florida Foreclosure Lawsuit where one of the 8 "foreclosure mills" is opposing counsel, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to see what foreclosure defense options may be available to you.

Fannie Mae has just filed a lawsuit in Florida court alleging that Ben-Ezra & Katz is refusing to turn over the files on more than 15,000 foreclosure cases that the foreclosure mill had been handling for the federal mortgage giant! In the notice of termination of the employment agreement provide to Ben-Ezra & Katz, Fannie Mae asked the firm to "immediately being transferring all documents, records and related work products created and/or complied under the agreement." The suit, brought in Broward County, states that Ben-Ezra & Katz, hired in by Fannie Mae in July 2008 and fired in February 2011, has failed to deliver the case files after repeated requests from Fannie even though Fannie Mae "stands ready, willing, and able to accept."

The full emergency complaint from Fannie Mae is posted below.

Federal National Mortgage Association aka Fannie Mae vs Ben-Ezra & Katz, P.A.

In yet another blow to the Florida Foreclosure Mills, Federal mortgage giant Freddie Mac has announced that it is pulling its cases from the Law Offices of Marshall C. Watson. A statement from the Fort Lauderdale based firm announced that "Freddie Mac and our firm mutually decided to part ways" and that all cases Freddie Mac files will be removed from the firm. Freddie Mac spokesman Brad German stated that "going forward our servicers will be directing business to other counsel" but that the Marshall C. Watson firm will continue to work with Freddie Mac to guarantee that the existing foreclosure files will be transitioned smoothly and quickly.

In November 2010, both Fannie Mae and Freddie Mac announced that they were firing Florida Foreclosure Mill the Law Offices of David J. Stern and this announcement comes roughly one month after Fannie Mae announced that it would no longer be using Fort Lauderdale based Ben-Ezra & Katz. The Law Offices of Marshall C. Watson are still on the list of retained attorneys for Fannie Mae.

The removal of Fannie Mae and Freddie Mac cases from Stern turned out to be the death nail for that firm as it announced last week that it was stopping all foreclosure related business. So far, Ben-Ezra & Katz is still does not appear have been hampered by the withdrawal of Fannie Mae cases, as it continues to maintain its foreclosure operations. If you are facing a Florida Foreclosure Lawsuit from one of the Florida Foreclosure Mills, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to see what foreclosure defenses may be available to you.

According to the Florida Attorney General's website, the Economic Crimes Division of the AG's office is now investigating notorious "foreclosure mill" Ben-Ezra & Katz. The website lists the subjects of the investigation as "Ben-Ezra & Katz, P.A. and Marc A. Ben-Ezra, individually and Marvin Katz, individually." The website also lists the allegations or issues being investigated as "violation of Florida Statute 501 Part II, appears to be fabricating and/or presenting false and misleading documents in foreclosure cases. These documents have been presented in court before judges as actual assignments of mortgages and properly prepared affidavits that have later been shown to be legally inadequate and/or insufficient. Presenting and preparing faulty paperwork to use to foreclose; to collect attorney fees and to create affidavits of indebtedness."

The "foreclosure mill" is just a few weeks removed from being fired by Fannie Mae and has been forced to lay-off almost half of its lawyers and support staff. If you are facing a Florida Foreclosure Lawsuit where Ben-Ezra & Katz is opposing counsel, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to explore what foreclosure defenses may be available to you.

To view the Florida Attorney General Website announcing the investigation click here.

South Florida "foreclosure mill" Ben-Ezra & Katz have announced that it has been forced to lay off almost half of its 568 employees after Fannie Mae "fired" the firm last week. In a memo released by a Ben-Ezra & Katz company spokesman said the firm was "forced to take this action after Fannie Mae surprisingly terminated its relationship with the firm."

Fannie Mae terminated its relationship with the firm in early February citing "document execution issues" and it informed the servicers of Fannie Mae loans to stop all payments to Ben-Ezra and Katz and to find new law firms to handle former Ben-Ezra & Katz cases immediately. it is estimated that Ben-Ezra & Katz handled at least 18,000 foreclosure cases in Florida alone.

If you are facing a Florida Foreclosure Lawsuit where Ben-Ezra & Katz is plaintiff's counsel, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to see what foreclosure defenses may be available to you.

For the second time in the last 4 months, Federal mortgage giant Fannie Mae has fired one of the notorious "Florida Foreclosure Mills" when it announced that it will no longer refer foreclosure cases to Ben-Ezra & Katz. Fannie Mae sent a notice letter to all servicers who service Fannie Mae mortgages that payments to Ben-Ezra & Katz should be stopped immediately and instructs servicers to find new law firms to handle Ben-Ezra & Katz cases.

In an announcement from the mortgage giant, Fannie Mae spokeswoman Amy Bonitatibus stated "Fannie Mae has become aware of certain document execution issues at the Ben-Ezra law firm regarding its processing of foreclosure cases on our behalf" and "it is our expectation that law firms will handle matters in strict compliance with proper procedures, ethical codes of conduct and legal requirements." Ben-Ezra & Katz released a statement saying it was "disappointed and surprised by Fannie Mae's decision and that the issues Fannie Mai is referring to were technical paperwork problems that the firm is correcting."

This marks the latest blow to one of the notorious "Florida Foreclosure Mills", coming on the heels of the realization that at least three more law firms are being investigated by the Florida Attorney General's office for their foreclosure practices. Will the same problems that have plagued the Law Offices of David J. Stern after they were terminated by Fannie Mae resurface at Ben-Ezra & Katz? If you are facing a Florida Foreclosure Lawsuit, contact a Florida Foreclosure Defense Lawyer or a Jacksonville Foreclosure Defense Lawyer today to see what foreclosure defenses may be available to you.

As a Jacksonville Foreclosure Lawyer wrote in early January, new Florida Attorney General Pam Bondi is expanding her Office's investigation into "robo-signing" and falsification of documents by investigation firms other than the five firms initially under investigation.  At the time of Mrs. Bondi's announcement, she declined to specify which additional firms were being investigated. A Jacksonville Foreclosure Lawyer has learned that at least three other firms are being investigated and the letters from the Attorney Generals' office are attached below which were obtained through freedom of information requests.

The Letters inform the Kahane & Associates, The Law Office of Daniel Consuegra, and Albertelli Law Firm that a preliminary investigation regarding complaints received by the AG regarding allegations of unfair, deceptive and unconscionable practices by the firms in regards to their handling of mortgages which are in default.

New Florida Attorney General Pam Bondi is expanding the investigation into the foreclosure mess begun by her predecessor beyond the initial allegations of the falsification of court documents and widespread "robo-signing." The Attorney General's office did not give specifics as to which firms are facing allegations and nor did it indicate a timetable for the investigation to be finalized.

The investigation has now been expanded to include allegations of misconduct by attorneys and other staff who worked at the large Florida law firms many are now calling "foreclosure mills." In addition to the allegations of attorney misconduct, the investigation will include: law firms padding their bills in order to obtain higher final judgments for mortgage lenders during the foreclosure process, law firms filing foreclosure lawsuits before the lender or servicer actually shows it has an interest in the mortgage, lawyers and law firms routing business to title companies owned by other attorneys in their law firm, and lawyers presenting blank bills to the court that do not show the actual cost of their services.

A Jacksonville Foreclosure Lawyer is glad that the new Attorney General has continued, and even widened, the investigation into the practices of the notorious Florida "foreclosure mills." If you are facing a Florida Foreclosure Lawsuit and want to see what defenses may be available to you, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today.

With 11 law schools located within Florida there is no shortage of new, young attorneys looking for work. Now many of those attorneys may face Florida Bar investigations as a result of their role in the foreclosure crisis that has gripped the state. More than 260 attorneys work at Florida's four largest "foreclosure mills" and 48 percent of those have been practicing for less than three years. Homeowners advocates are now beginning to place blame on these inexperienced attorneys by calling into questions whether the foreclosure crisis would have reached these levels if "novice lawyers" had not been doing the legal work.

After being laid-off from their positions at the Law Office of David J. Stern, many of the new attorneys have had little trouble finding work. The attorneys, many who had been employed by the firm for less than one year, have been scooped up by other existing "foreclosure mills" and other firms who are looking to create foreclosure practices.

If you are facing a Florida Foreclosure Lawsuit brought by one of the notorious Florida "foreclosure mils," contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to have your case reviewed to determine what defenses may be available to save your home.