Tuesday, November 2, 2010

Central Florida Homeowner Fights Off Two Banks Foreclosing On Same Loan; Notorious Law Mill Representing Lender In One Suit Fails To Return Calls

In Central Florida, CNN's AC 360 reports:

  • Tony Louzado is facing foreclosure. He's not alone -- in central Florida, where Louzado lives and works, one in every 56 homes is in foreclosure. That simple number, from foreclosure data firm RealtyTrac, doesn't tell the whole story, especially in Louzado's case.

  • Two different law firms are pushing the foreclosure -- on the same mortgage. "I see now that there's two people that are coming after me, that maybe [the bank] hired in this way," he said. "I don't know all the specifics, but there's two people that are coming after me on the same loan number."

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  • "In my opinion, these are hired guns. Banks want these non-performing loans off their bottom line. And what do they do? They go out and hire a foreclosure mill who's trying to push it through as fast as possible," said Louzado's attorney, Jose Funica. [...] Funica's Palm Beach law firm, Ice Legal, has taken numerous depositions where banking officials have admitted under oath they signed thousands of foreclosure-related documents every month without personally verifying them.

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  • One of the firms foreclosing on Louzado is the law office of David Stern in Plantation, Florida. Florida's attorney general says Stern's foreclosure business is the largest in the state and accuses the firm of submitting false documents, even making some up, just to speed up the foreclosure process. The state has opened a civil investigation against several firms, including Stern's. Repeated calls to Stern's office have not been returned.

For more, see Are some law firms cutting corners on foreclosures?

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