Florida Foreclosure Defense Lawyers Blog

In early March, Freddie Mac cut ties with the Law Offices of Marshall C. Watson, a Fort Lauderdale, Florida based law firm they hired to handle some of their foreclosure files in Florida. The reason given for the firing is "foreclosure processing abuses." Freddie Mac's sister corporation, Fannie Mae has chosen to continue to use the firm, explaining it is just too costly to move their foreclosure files to new firms. After transferring their foreclosure files from the Law Offices of David J. Stern, Fannie Mae is expecting a $5.5 million bill.

The Law Offices of Marshall C. Watson is reported as handling 43% of Fannie Mae's foreclosure cases in Florida, according to a Federal Housing Finance Agency Spector General report. The report also criticized Freddie Mac and Fannie Mae for a lack of communication regarding problems within law firms retained to handle their foreclosure files. The report continues to state, "Freddie Mac has terminated law firms for poor performance, and Fannie Mae has retained the firms."

Fannie Mae first became aware of foreclosure abuses in 2003 from an investor, which were later confirmed in a 2006 report performed by Fannie Mae. The 2006 report found "foreclosure attorneys are routinely filing false pleadings and affidavits," and that "Fannie Mae has not authorized this unlawful conduct."

Following Freddie Mac's firing of the Law Offices of Marshall C. Watson, the firm signed a $2 million settlement agreement that ended a investigation in to the firm's foreclosure practices byFlorida Attorney General's Office. Currently, Freddie Mac has about $109 billion in unpaid home loan balances in Florida. Fannie Mae has an even greater balance of $180 billion.

If you are facing a Florida Foreclosure Lawsuit from Fannie Mae or the Law Offices of Marshall C. Watson, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today for a free initial consultation to determine what foreclosure defense options may be available to you.

Apparently the office of the Florida Attorney General is becoming quite the place for attorneys to cut their teeth before moving on to more lucrative positions with many of the primary actors in the Florida foreclosure industry. In recent months, the director of the Economic Crimes Division for the Florida Attorney General's office has taken a position with "foreclosure mill" Law Offices of Marshall C. Watson, a former deputy Attorney General has been hired by Lender Processing Services and a former Broward County Judge announced he was leaving his judicial post also to work with the Watson firm.

All the moves prompted assistant state attorney general Andrew Bennett Spark, of the Tampa office of economic crimes, to write a 16-page memo he distributed to several Florida media outlets. The memo outlines several concerns Mr. Spark has with the overall AG's office while focussing on the firing of two former state foreclosure investigators and the flight of staff members to foreclosure companies. Mr. Spark wrote "the people of the State of Florida are entitled to fair and honest government, independent of personal connections and powerful interests."

The Law Offices of Marshall C Watson has responded saying their hirings are within the ethics code and having such experienced counsel overseeing the litigation and compliance departments will "further enhance our practices" and prevent the unethical practices that were rampant in previous years.

If you are one of the thousands of Floridians facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today for a free consultation to determine what foreclosure alternatives 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.

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.

The Florida Attorney General's Office has just announced that it has settled its investigation into their foreclosure related practices with notorious Florida "foreclosure mill" Marshall C. Watson. The settlement calls for a $2 million payment and imposing certain business conduct requirements. Half of the $2 million payment will go to the Florida Bar Foundation to continue the Florida Attorney General Mortgage Foreclosure Grant Program which provides funding for legal aid attorney positions that represent low-income homeowners facing foreclosure throughout the state. This is the first such settlement stemming from the investigations. In the last year the Florida Attorney General has announced investigations into the foreclosure practices of eight "foreclosure mills."

To read the full Information Release from the Attorney General click here.

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.

In an unexpected announcement, which coincides with the offering of a free continuing legal education seminar aimed at improving the foreclosure processes in Florida, the Florida Bar is now requiring all attorney's to notify foreclosure judges about potential fraud in their cases, including those cases that are closed and the home sold. With 1.2 million foreclosures being filed in the state of Florida since 2007 and countless accusations of fraud from the five Florida "foreclosure mills" no one can accurately estimate the impact on foreclosure cases in the state. This announcement represents the largest step toward preventing fraud the Florida Bar has ever taken.

Attorneys are now instructed to report the fraud to the court, but are instructed not to do so in a public court hearing. Instead, attorneys are instructed to ask for a private, "in camera", hearing with the judge in order to determine whether any fraud was perpetrated. Many foreclosure defense lawyers have bristled at the idea of more, private hearings and point to the fact that foreclosure hearings are civil matters and are, and should be, open to the public. It remains to be seen what judges will do once they are alerted to fraud, as the consequences range from doing nothing to dismissing the action.

A Jacksonville Foreclosure Lawyer hopes that this latest step to prevent fraud has a profound effect on foreclosure courts and Florida homeowners facing foreclosure. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today.

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.

The Florida Supreme Court has rejected the request of Florida based U.S. Rep Alan Grayson to halt all Florida foreclosures being pursued by 3 south Florida foreclosure mills while those firms are being investigated by the Florida Attorney General's Office. The Court stated that it does not have the authority under the Florida Constitution and the rules of the court to stop pending foreclosure cases due to allegations of fraud and/or attorney misconduct.

Rep. Grayson asked the court to take action in a September 20 letter to Chief Justice Charles T. Canady .The court said the cases must first be adjudicated fully by the trial courts before the Supreme Court can get involved and suggested that Rep. Grayson request The Florida Bar take action. In response to the Florida Supreme Court's letter, Rep. Grayson said "we appreciate the guidance of the Florida Supreme Court...we have to put an end to this epidemic of fraud on the courts, which is robbing people of their homes." Grayson also stated that his staff is preparing the paperwork to request the Florida Bar's cooperation.

This is another step in the fight to help Florida homeowners facing foreclosure. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to explore the defenses that may be available to you.

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.

A Miami Gardens woman is facing the loss of her home of 15 years through foreclosure due to a startling amount of mortgage fraud and it seems as though the foreclosing entity doesn't care. Despite a mountain of evidence of mortgage fraud including the mortgage broker who handled the homeowners refinance has been convicted of, and is serving a 11-year sentence for, grand theft and has an additional 16 counts of mortgage fraud pending; the closing agent operated an illegal title company believed to have stolen $1.5 million from South Florida homeowners from 2005-2007; Florida Default Law Group, one of the "foreclosure mills" being investigated by the Florida Attorney General, is the firm prosecuting the foreclosure action, law enforcement officers are scheduled to evict the family next week.

This whole ordeal started when the mortgage broker, an associate of BlueKap Financial Group, paid an unsolicited visit to the homeowner telling her that he could give her a hassle-free refinance, allowing her to take $50,000 of equity out of her home to help her during the period of time she was looking for a nursing job. The mortgage broker, using a fraud scheme he and his associates employed many times, used an inflated appraisal and a "straw buyer" to take $230,000 of false equity out of the house before giving the promised $50,000 to the unknowing homeowner. Now the homeowner is on the hook to Deutsche Bank for the full amount of the mortgage, $303,000, though the home is currently appraised at $98,310.

In July, the case was transferred to the new Miami-Dade "rocket docket" from the civil division, where it had spent the previous three years. In August the case was transferred to a Section 50 court, where cases open longer than two years are placed, and the new judge granted Deutsche Bank summary judgment effectively ending the case. The homeowner stated that during the 15-minute summary judgment hears that the judge did not allow her or her attorney to get in a word of defense.

If you are facing a Florida Foreclosure Lawsuit and you feel that you may have been a victim of mortgage fraud, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today to have your case reviewed.

A local Boca Raton, FL foreclosure defense lawyer can tell his clients that he knows exactly how they feel, because he too is facing a Florida Foreclosure Lawsuit. The attorney began having financial trouble in 2006 which caused him to fall behind on his mortgage payments and led to Deutsche Bank filing a foreclosure complaint against him in 2007. Florida foreclosure mill, the Law Offices of Marshall C. Watson, are representing Deutsche Bank in the case.

The attorney says he is confident he and his attorney can defend the foreclosure case because of the customary paperwork issues. When served he was served his foreclosure complaint the attorney filed a Motion for a More Definite Statement because, as in thousands of other Florida Foreclosure Lawsuits, Deutsche Bank did not have the mortgage note, which is necessary to prosecute a foreclosure case. While the attorney says he is embarrassed by the fact that he is facing foreclosure but now he feels as if he understands the troubles of his clients much better.

If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer today to review your case to determine whether paperwork errors were made and what defenses may be available to you.

To read the full story from the Sun-Sentinel click here.

With scores of complaints from Florida homeowners, foreclosure defense lawyers and investigations by both the Florida Attorney General's Office and the U.S. Congress, the Florida Bar says they are not getting formal complaints against attorneys who commit foreclosure fraud. While the Florida Bar has suspended or disbarred over 200 attorneys so far this year none have been a result of complaints of foreclosure fraud. But by taking several proactive steps, the Florida Bar thinks this trend will quickly change.

The head of the Florida Bar, Mayanne Downs, is now asking judges statewide to report any and all instances of foreclosure fraud or fraud on the court, including sending copies of orders judges write where they mention some form of misconduct. While judges will now be on the lookout for foreclosure fraud it is up to Florida homeowners and their attorneys to challenge the fraudulent behavior in front of the court so judges are aware that the fraud is happening. To deal with the anticipated increase in foreclosure fraud complaints the Bar has instituted a new category solely dedicated to tracking foreclosure fraud complaints. In the month of November, the Bar is already investigating 43 reports of foreclosure fraud.

If you are facing a Florida Foreclosure Lawsuit and you feel that a foreclosure fraud has been perpetrated against you, contact a Jacksonville Foreclosure Defense Lawyer or a Florida Foreclosure Defense Lawyer today for a complimentary case review.

US Rep. Alan Grayson, asked the Chief Justice Charles T. Canady. of the Florida Supreme court to halt all foreclosures being handled by the law office of David J. Stern, Marshall C. Watson, and Shapiro & Fishman.

Here is a copy of his letter:

September 20, 2010

Chief Justice Charles T. Canady
Florida Supreme Court
500 South Duval Street
Tallahassee, FL 32399-1900

Dear Chief Justice Canady,

I am disturbed by the increasing reports of predatory 'foreclosure mills' in Florida. The New York Times and Mother Jones have both recently reported on the rampant and widespread practices of document fraud and forgery involved in mortgage assignments. My staff has spoken with multiple foreclosure specialists and attorneys in Florida who confirm these reports.

Three foreclosure mills - the Law Offices of Marshall C. Watson, Shapiro & Fishman, and the Law Offices of David J. Stern - constitute roughly 80% of all foreclosure proceedings in the state of Florida. All are under investigation by Attorney General Bill McCollum. If the reports I am hearing are true, the illegal foreclosures taking place represent the largest seizure of private property ever attempted by banks and government entities. This is lawlessness.

I respectfully request that you abate all foreclosures involving these firms until the Attorney General of the state of Florida has finished his investigations of those firms for document fraud.

I have included a court order, in which Chase, WAMU, and Shapiro and Fishman are excoriated by a judge for document fraud on the court. In this case, Chase attempted to foreclose on a home, when the mortgage note was actually owned by Fannie Mae.

Taking someone's home should not be done lightly. And it should certainly be done in accordance with the law.

Thank you for your consideration of this request.

Sincerely,

Alan Grayson
Member of Congress

In Jacksonville theThe Times Union reported that Florida's Attorney General Bill McCollum launched an investigation on August 10th to determine whether or not three of Florida's largest foreclosure law firms are using unfair and deceptive trade practices. The three law firms that are being targeted in this probe are The Law Offices of David J. Stern, P.A.; The Law Offices of Marshall C. Watson, P.A.; and Shapiro & Fishman, LLP. This comes on the heels of McCollum initiating a similar investigation into the Florida Default Law Group and Fidelity National Financing, a Jacksonville-based corporation. It appears as if the state's Attorney General is finally getting fed up with the fraudulent practices of Florida's "foreclosure mills."

The unfair and deceptive trade practices used by these firms put homeowners at a severe disadvantage when they are attempting to save their home from foreclosure. If you or anybody you know has received a foreclosure notice from any of the law firms that have been named in this article, it is imperative that you contact a Jacksonville Foreclosure Defense Lawyer or Florida Foreclosure Lawyer.