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Class Action law suit filed against Florida foreclosure mill-A shining example why NOT TO allow the seller's title agent conduct your closing

By
Title Insurance with Key Title Corporation 63078

Recently a 7.5 Billion Dollar class action law suit was filed against a Florida foreclosure firm alleging that they particpated in fraud when filing thousands of foreclosures in the State of Florida. To read the complaint, click here:

http://mattweidnerlaw.com/blog/wp-content/uploads/2010/07/sternclassaction.pdf

The Defendant Firm's attorneys primarily represent plaintiffs in foreclosure actions. Based upon statements by its owner and co-Defendant, David J. Stern, the Defendant Firm in 2008 and 2009 filed between 4000 and 7000 new foreclosure actions in the State of Florida per month. Beginning in or about 1999, the Defendant Firm joined with Defendant Merscorp, Inc., and other conspirators in the fraudulent scheme and RICO enterprise herein complained of. The employees of the Defendant Firm, including many licensed attorneys, have become skilled in using the artifice of MERS to sabotage the judicial process to the detriment of borrowers, and, over the past several years, have routinely relied upon MERS to do just that.

As Stern boasted to a room of investors at a recent promotional event, recent "direct source initiatives" by the larger lenders increasingly enable the Defendant Firm, DJSP, and other entities recently formed by Stern to take mortgages "from cradle to the grave."

One of the entities named in the class action suit is DJSP ENTERPRISES.   The entity (DJSP Enterprises) "went public" at some time in the recent past (Jan 2010), resulting in substantial profits to David J. Stern. While it purports to function through one or more "subsidiaries," its telephone number is the same as the one listed for the Defendant Firm. David J. Stern, through these and other "spin-off" entities, has made hundreds of millions of dollars fraudulently subverting the judicial process and the constitutional safeguards designed to protect the rights of litigants so as to manufacture a foreclosure and foreclosure-litigation industry which simply drives the hapless citizens in his path to cycle after cycle of impossible loan and inevitable foreclosure.

Paragraph 7 of the complaint begs the court:

This Court is urged in the strongest possible way to apply a presumption of FALSITY when reviewing any documentary evidence filed in this Court by one or more of the Defendants. Such a presumption is not just warranted; it is indeed compelled by the extent to which the Defendants and those with which they are associated have long acted in a malicious and wanton manner evincing complete contempt for the judicial process and the rights of persons having interests contrary to their own. This is particularly true because the Defendants' contempt for due process is compounded by their specific intention to obviate the requirement that documents prepared for legal use be truthful, authentic, and legitimate.

 While this case has been filed in Florida it could well reach all corners of the nation. We must remember that Florida is not the only state in which MERS is named as a nominee in the Deed of Trust document.  We must also remember that most large lending institutions, including Fannie Mae, Freddie Mac and others have adopted the "Cradle to Grave" concept.

As I have written on numerous occasions, there is just too much opportunity for issues relating to foreclosure to be missed when you rely upon the seller's foreclosure attorney and their title agencies to handle that transfer for you on that property you just bough out of foreclosure.

I do not intent to imply that all foreclosure mills have participated in the type fraud alleged in the complaint filed against Stern and his subsidiary entities, however, I do recall seeing a notice issued by Fannie Mae some months ago wherein they stated that MERS was no longer to be named in any foreclosure actions and that assignments out of MERS were to be completed IN ADVANCE of the filing of the Notice of Intent to Foreclose.  What does that say about those case that have already been filed nationwide where MERS was named in the foreclosure action?  I am sure that we will hear more about this case and I am equally as sure that there will be more class action suits filed nationwide alleging the same type fraud by foreclosure mills in every state in the nation.

 

Posted by

Charlene Perry
Key Title, Inc. 
35 Fulford Avenue
Bel Air, MD 20104
410-803-4800

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Rob Magnotta
Huntington Beach, Newport Beach, Seal Beach, Irvine REALTOR - Huntington Beach, CA
Huntington Beach & Newport Beach Coastal Specialist

Wow, this is scary stuff! Post updates if you hear of anything and have time.

Great post.

Aug 04, 2010 09:39 AM
Kevin Henry
Henry Realty - Fort Wayne, IN

We have to be on guard against all kind of crooks these days.

Aug 04, 2010 09:42 AM
Anonymous
lawgrace

federal judges, FORECLOSURE MILLS, & Freddie Mac

In Louisiana (and probably in other States), Freddie Mac, Wells Fargo, Federal Court Judges, and Foreclosures Mill lawyers are engaged in various illegal foreclosure activities:

1) Foreclosure mill lawyers file into court records obfuscated money-making pleadings (summary judgments, etc) even when Freddie Mac is NOT party to the lawsuits.  In so doing, those lawyers deceptively rake in billable $$$$ under pretext of representing Freddie Mac.  Additionally, those mills facilitate use of Freddie Mac’s identity for purposes of causing litigations to become transferred (removed) from state court to federal court, when those lawsuits otherwise would remain in state due to lack of federal subject jurisdiction.  Making this farce even worse is unjust “forum-shopped” federal courtrooms of which the federal judges know (it’s impossible to not know) those cases lack federal subject matter.

2) In blatant conflict of interest, some foreclosure mill lawyers obtain for themselves ownership of those properties; and these mills welcome litigation which adds billable fees.  After their  “simulated” property auctions, some mill lawyers actually bid and taken ownership of the properties, and then FLIP the property to Freddie Mac.

3)  Wells Fargo (WF) benefits from real estate foreclosure schemes by filing false IRS (“acquisition”) form 1099-A’s, despite that WF never lawfully “acquired” some of those so-called foreclosed properties, which became foreclosed via either defunct mortgage lenders’ names or  lenders’ names no longer own those notes.

4) See this foreclosure case filed under defunct Lehman Brothers as owner of the mortgage loan, while Wells Fargo also claimed ownership of that exact loan and sought the insurance proceeds for that Hurricane Katrina damaged property. (There are likely hundreds, thousands of suce Katrina insurance incidences!)  http://www.lawgrace.org/2008/09/14/lehman-brothers%E2%80%99-mortgage-troubles-nationally-evidence-of-foreclosure-fraud-deception-and-conspiracy-with-wells-fargo-deceptive-judicial-filings/

Foreclosure mills are being unjustly enriched, and lenders and courtrooms are abetting –and sometimes benefitting from these fraudulent foreclosure schemes.

MORE:

Illegal Foreclosures & Evictions, Appalling Lender / Lawyer Abuses...
http://newsblaze.com/story/20091011141440lawg.nb/topstory.html

Lack of Legal Help: One More Way the Deck Is Stacked Against Homeowners
http://www.huffingtonpost.com/arianna-huffington/lack-of-legal-help-one-mo_b_310353.html

OPEN LETTER TO PRESIDENT OBAMA on Foreclosure Crisis
http://www.pr-inside.com/open-letter-to-president-obama-on-foreclosure-crisis-r1505916.html

Aug 05, 2010 12:34 AM
#3
Anonymous
Charlene perry
Wow thank you for this information. This will play out for years to come. Surely we will hear about more of these suits being filed. As a title agent I wonder how this is going to affect future transactions where buyers and lenders need title insurance. Scary
Aug 05, 2010 12:52 AM
#4
Amy O'Laughlin
Broken Arrow, OK

Thank you for sharing this, Charlene-it is truly disturbing!  Everything I never wanted to know and could never even imagine.  I would think many other states will have similar cases file in them.

Aug 05, 2010 09:19 AM
Anonymous
Bill

Wells Fargo services my mortgage for Freddie Mac  and had a foreclosure started with an up to date acccount. Sounds like I was a victim of this story myself. Definately going to look into this.

Aug 08, 2010 08:06 AM
#6
Anonymous
lawgrace

An additional casualty of foreclosure frauds and schemes is that most foreclosed homeowners are not even aware of the matter of mortgage lenders turning in the names and social security numbers of those property owners to the Internal Revenue via (legitimate as well as non-legitimate) IRS form 1099-A, until they receive those (sometimes fraudulent) LARGE TAX BILLS, which becomes huge problems particularly when foreclosures are in the first place fraudulent. >>> http://www.lawgrace.org

Aug 08, 2010 11:33 AM
#7
Anonymous
Mavrick

This is an excellent source for the latest on this fraud and I think the owner of this site is the plaintiff listed in the Class Action against MERS and Stern.

http://stopforeclosurefraud.com/

Aug 10, 2010 05:20 PM
#8
Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

My goodness, just read this. It was in our local paper today as well

Aug 12, 2010 11:33 AM
Anonymous
Charlene Perry

Ellen

Can you please tell me the name of the paper that had the article in it today?  I very much appreciate that you took a moment to read my blog.  I hope that life is treating you well.

Charlene

Aug 12, 2010 02:25 PM
#10
Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

http://www.zimbio.com/Buy+Foreclosure+Home+Make+Money+Buying+Foreclosure+Homes/articles/527/LAW+OFFICE+DAVID+J+STERN+MISTAKENLY+FILES

 

this link should give you access to all including court papers filed..let me know if you have any trouble with this.

 

Aug 13, 2010 01:00 AM
Ellen Dittman
Watson Realty Corp. - Middleburg, FL
#1 Stop for NE FLA-JAX/OP 904.535.1199 (TEXT OK) r

http://www.sourceoftitle.com/blog_node.aspx?uniq=657

http://jacksonville.com/opinion/blog/422234/paul-pinkham/2010-08-10/florida-attorney-general-investigating-south-central

Above is the one from our local news. I cannot believe I did not hear about all this till just the other day. Obviously you have been right on top of it.

Aug 13, 2010 01:05 AM
Anonymous
charlene

Thank you _

Aug 13, 2010 01:13 AM
#13
Anonymous
charlene

Thank you _

Aug 13, 2010 01:13 AM
#14
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo
 

yes they look so nice but Foreclosures are such tough on to stomach.

Nov 10, 2011 02:59 AM