Matt Weidner – Fighting For The American People

Posts Tagged ‘florida supreme court residential mortgage task force’

The Law Offices of David Stern is probably the single busiest foreclosure mill operating in the State of Florida.  The information quoted below comes directly from documents filed with the Securities and Exchange Commission.  I encourage everyone who practices in foreclosure or who cares one bit about the impact foreclosures are having on our state and our courts to read the document very carefully and consider the implications of each of the statements.

• We were incorporated in the British Virgin Islands on February 19, 2008 under the name “Chardan 2008 China Acquisition Corp.” as a blank check company for the purpose of acquiring, engaging in a merger or share exchange with, purchasing all or substantially all of the assets of, or engaging in a contractual control arrangement or any other similar transaction with an unidentified operating business which has its principal business and/or material operations in China. When the global financial crisis occurred soon after the completion of Chardan 2008’s initial public offering in August 2008, Chardan 2008’s management believed that US equity markets would be less receptive to a transaction with a Chinese company.

• Revenue from foreclosure fees increased by 9% to $19.6 million during the three month period ended March 31, 2010 as compared to $17.9 million for the same period in 2009.  This increase is primarily due to an increase in the per file fee we receive for providing such services that became effective as of the beginning of 2010.  Revenue from closing services increased to $2.6 million during the first quarter of 2010 from $1.7 million during the first quarter of 2009, representing an increase of 55.5%.

• During the three months ended March 31, 2010, our REO liquidation services business became an increasingly significant source of revenue, generating approximately 5% of our total revenue during that period.  Our REO liquidation business has a sole customer through which we generated $3.3 million in revenue for the first quarter of 2010 compared to $1.9 million in the same period last year, primarily due to an increase in the number of REO liquidation files which grew to 1,728 files in the first quarter of 2010, an increase of 56%, from 1,111 files in the first quarter of 2009.

• Net income decreased by $5.4 million, or 40.6%, to $7.9 million in the three months ended March 31, 2010, as compared to $13.3 million in the same period of 2009.  Adjusted net income, which is a non-GAAP financial measure discussed in more detail below, decreased by $2.2 million to $8.7 million or 21% in the three months ended March 31, 2010 as compared to $11.0 million in the three months ended March 31, 2009.

• From 2006 to 2009, our foreclosure case load increased from 15,332 to 70,382.

• Beginning in April, one of DJS’ largest bank clients for which we provide mortgage foreclosure services initiated a previously undisclosed foreclosure system conversion that has resulted in a marked decrease in the number of foreclosure files emanating from it nationwide.  We have been advised by the bank that the system conversion is quite extensive and affects most loan types other than those associated with certain government sponsored entities.  While DJS is still receiving new foreclosure files from the bank for loan types that are not affected by the conversion, the bank has advised DJS that it does not expect to generate new foreclosure files for the affected loan types until the conversion is complete. Due to this conversion, we experienced a decline of approximately 1,500 new foreclosure files in each of April and May, 2010 from this client.

• During calendar years 2007, 2008 and 2009, DJS referred to us case files totaling 61,480, 96,509 and 98,259, respectively.

• The majority of file referrals to DJS come from fewer than a dozen lenders and loan servicing firms. If DJS were to lose any of these sources of business, in whole or in part, it would adversely affect our financial performance.

• In 2008, the top ten clients for DJS, on an aggregate basis, accounted for 94% of its case files referred to DJS for mortgage default and other processing services; and its largest single customer, accounted for 21% of DJS’ total foreclosure file volumes for the same period.

The US economy collapsed in 2008 and we would have fallen into an economic and  societal abyss had the federal government not taken massive interventions that we’ll be paying for for decades to come.  As we know from the investigations that are now being made public, and which will continue to develop in the years to come, Wall Street Fat Cats teamed up with shifty players from the mortgage industry to monetize then liquidate the single largest collection of public wealth ever accumulated….the equity Americans held in real estate.  The unchecked, unregulated and unrestrained business practices allowed two entire sectors of the economy- real estate/mortgage and Wall Street/finance to merge together in an orgy of greed, fraud and deceit.  The “screw the rules”, “everyone for themselves” culture eventually led to collapse.

Apparently we didn’t learn our lesson because these same attitudes and business practices have infected our court rooms across the country.  The results will be a new round of financial chaos because the land title industry simply cannot pay the claims that will come when the results of the improper court practices are litigated in the decades to come.

Reuters Article on Bankruptcy of LandAmerican

Tampatribunearticle

TAMPA – Lawyers and consumer advocates plan a rally in Tallahassee Wednesday to protest a controversial bill that would speed up foreclosures in Florida.

The legislative bill would allow lenders to foreclose on homeowners without approval from a judge in as little as 90 days. It appears to have stalled, but the group says it wants to send a message to legislators.

“Do not take away valuable consumer protections,” the lawyers said in a news release. “We want to work together to solve the current crisis.”

One of the lawyers organizing the event is Matthew Weidner, of St. Petersburg. He says hundreds, possibly thousands, will attend.

“People feel insecure about their futures and finances,” Weidner said. “This is an issue that touches everyone.”

House Bill 1523 would allow lenders to skip legal proceedings unless the borrower requests the foreclosure go through the courts

Florida law requires a lender to file a foreclosure lawsuit and have the foreclosure granted from a judge. There are nearly 500,000 pending foreclosure cases in Florida, among the worst in the nation. Because of the backlog, foreclosures can take months or years.

Critics say the bill significantly shortens the foreclosure process, making it more difficult for troubled borrowers to save their houses. They say the bill wouldn’t help the backlog of foreclosures because it applies only to new cases.

Supporters say it would take a burden away from judges and is good for neighbors weary of long-vacant houses in their community.

There are 30 states that have a nonjudicial foreclosure process, allowing some lenders to foreclose on properties in as little as a month.

Anthony DiMarco, executive vice president for governmental affairs for the Florida Bankers Association, said lenders hope the bill will eventually pass.

“We’re disappointed that it may not pass this session,” DiMarco said. “But we understand that we’re making a major change to the law. What we’re proposing won’t solve everything, but we can’t get the real estate market back on track until we deal with these foreclosures.”

The rally is planned for 9 a.m. Wednesday on the steps of the state capitol. A bus will leave for Tallahassee at 3 a.m.Wednesday from 1 Corporate Center, near International Plaza in Tampa.

Reporter Shannon Behnken can be reached at (813) 259-7804

Check out Bay News 9′s latest update on the Foreclosure Bill!

(click here to watch news video)

Tuesday, April 13, 2010:

BAY NEWS 9 — Florida lawmakers are looking at a bill, the Homeowner Relief and Housing Recovery Act, which would allow some homeowners to go through the foreclosure process without going before a judge.

Attorney Matthew Weidner said the proposed law would make the foreclosure process faster and easier for banks, but that some people will give up their rights if the bill becomes law.

“It removes judicial oversight in the foreclosure process,” Weidner said. “Right now if a bank wants to come and take your home, or a legislator’s home for that matter, they have to go through a judge. A judge that we elect. A judge that’s fair and is independent. What the bankers want to do is to remove that fair and independent judicial oversight of the foreclosure process.”

But state Sen. Michael Bennett (R-Bradenton), who’s sponsoring the bill in the Senate, said some homeowners want the non-judicial foreclosure option. Bennett also said the program is voluntary.

“We actually have a lot of homeowners who, if they could get away from the deficiency, would be very happy to walk away from the whole deal,” Bennett said. “But we want to make sure that if they still want to go to court, that if they still want to fight it, they can still have that opportunity. So, it’s strictly a voluntary thing by the mortgagee.”

Similar bills are making their way through House and Senate committees.”

Watch the Bay News 9 Video below:

Video:  Homeowners Relief Act

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PR: wait… I: wait… L: wait… LD: wait… I: wait… wait… Rank: wait… Traffic: wait… Price: wait… C: wait…

As reported in previous posts, the Florida Supreme Court has gotten the message that lenders and their unethical attorneys are abusing the court process and breaking the rules as part of their burning quest to take back consumers homes. (whether they actually have the right to or not.)  The Supreme Court doesn’t just go about changing rules unless they have identified serious problems and in fact that have.

The Florida Supreme Court’s New Rule Attempts To Address “Sewer Service”

An earlier post detailed how the new rules require a party filing a new foreclosure case to sign  the lawsuit and have it notarized, under penalties of perjury as a way to reduce the blatant lies and fraud that is being perpetrated on courts by unethical lenders and their attorneys.  The next component of the rules attempts to address the problem of these firms filing “Affidavits of Dilligent Search and Inquiry” or swearing under oath that they have made attempts to locate the owner, but have been unable to.  Type in “Sewer Service” or “Trashed Out” and you will find examples of what is happening, or click here.

Bottom line is, rather than wait to get proper service on Defendants in these cases, sometimes the banks would just kick down the homeowner’s doors, throw away their possessions and change their locks.  As you’ll learn from reading “Trashed Out” examples, sometimes the bank doesn’t even own the home they’re breaking into and trashing out.  Below is a notice one of my client’s received on her door after the bank had broken down the door and seized her property…she wasn’t hiding from service at all, a simple search of court records would have brought the Plaintiffs to my office where I could have accepted the lawsuit; I will update you on this case as it progresses…

Anywhoo, back to the Florida Supreme Court.  In response to Affidavit abuses, the Plaintiff’s firms must now fill out a new form which requires more affirmations before they can go asserting service by publication in a foreclosure case.

The sworn statement of the plaintiff, his or her agent or attorney, for service of process by publication against a natural person, shall show:

(1) That diligent search and inquiry have been made to discover the name and residence of such person, and that the same is set forthin said sworn statement as particularly as is known to the affiant; and
(2)Whether such person is over or under the age of 18 years, if his or her age is known, or that the person’s age is unknown; and
(3) In addition to the above, that the residence of such person is, either:
(a) Unknown to the affiant; or
(b) In some state or country other than this state, stating said residence if known; or
(c) In the state, but that he or she has been absent from the state for more than 60 days next preceding the making of the sworn statement, or conceals himself or herself so that process cannot be personally served, and that affiant believes that there is no person in the state upon whom service of process would bind said absent or concealed defendant.

The new rule should help curb the abuses, but they will not end.  Please share with me your examples of “Sewer Service” and other problems with service of process or foreclosure cases.

Courts Are Overwhelmed With Foreclosures

Across the country, circuit court judges and their staff are becoming overwhelmed and frustrated by the total avalanche of foreclosure cases that have been dumped in their courtrooms.  In Pinellas County, Circuit Court judges who used to handle like 400 foreclosure cases are now handling something like 3,000.These judges still have one judicial assistant and the same limited resources the had before the crisis.  When the judge’s loan JA sits down to start the day, they are bombarded with phone calls and mail and people in their face every single second….it’s chaos, its a burden and it is completely untenable for the long run.

I know, Let’s Throw All The Rules Out The Window

Many of the Plaintiff’s attorneys that are working so hard to throw borrowers out of their home cannot rely on good, solid, honest legal work to accomplish their job.  As an attorney who sees the work of these firms every day, I am just astonished that the Courts continue to allow such horrendous practice to continue unchecked, but there seems to be little desire to try and force a correction of the behavior.  Just in case you think I’m overstating the problem, here is an excerpt from the Florida Supreme Court’s Task Force Report on Residential Mortgage Foreclosures

• Finally, it is critical that these firms be candid, clear, and truthful and accurate in connection with pleadings and affidavits filed with the Courts.  A leading plaintiff’s lawyer and a major plaintiff’s law firm have been the subject of a public reprimand and sanctions due to untruthful filings with the courts.  Judges continue to see affidavits of amounts due and owing signed by law firm employees, and cost affidavits charging very high service of process fees for process serving firms owned by the law firm principals.  To some extent, it is fair to be concerned whether the press of the case load is interfering with a judge’s ability to police the conduct of the firms before them in these usually uncontested, unopposed foreclosure cases.

The full report can be found here but the bottom line is this, the lenders and their law firms are lying, lying, lying.  They’re committing fraud on the courts on an unprecedented scale.  The report of the Supreme Court is a bit sanitized, but the firms are whipping out foreclosure cases so quickly that they’re not even bothering to get the proper documents that prove they have a correct basis to file a suit from the outset.  Some firms have ownership interests in the process servers who are supposed to personally hand the lawsuit to a defendant and they’re both charging exorbitant fees for this service and lying about whether proper service has been obtained or even attempted.  And finally, the biggie….they’re lying, lying, lying about the evidence they’re submitting to the court, these come primarily in the forms of Affidavits and Assignments submitted to support Summary Judgments of Foreclosure.

Affidavits and Assignments in Foreclosure, Liars Re-Telling Lies Re-created From Fiction

There are several areas where the lying is reduced to black and white and submitted to the court.

Assignment of Mortgage

First, when the foreclosing Plaintiff is not the original lender, there must be a formal Assignment of Mortgage executed which says, “The Original Lender Assigns This Mortgage to the Plaintiff in This Case.”  This document is needed to give the Plaintiff the proper legal basis to be suing the Defendant. Many of the originating lenders are no longer operating so getting a real assignment from a dissolved corporation would be difficult.  In other cases, the Plaintiff introduces an Assignment of Mortgage executed by “MERS” a shadowy, shifty, shady backroom dealer of mortgages.   The Assignment of Mortgage issue is problematic even when a mortgage was only assigned from an originating lender to the foreclosing Plaintiff, but in cases where a mortgage has changed hands many times, there should be an unbroken chain of properly executed assignments from originating lender straight through to foreclosing Plaintiff.  (In fact, this requirement of an unbroken chain of assignments was originally part of the foreclosure procedures in Pinellas County, but this requirement was stripped.)  The problem is these assignments are frequently fraudulent.  The lenders know this, their attorneys know this and the courts know this, but they’re all just going ahead and pretending like it’s not an issue. IT IS AN ISSUE!

Affidavit of Amounts Due and Owing

The second area of Affidavit Fraud is the Affidavit of Amounts Due and Owing which states, “Your Undersigned Affiant is an employee of the Plaintiff and I SWEAR Based on my PERSONAL KNOWLEDGE that the Plaintiff is Owed, $150,000″.   In a case where the original lender is the foreclosing Plaintiff, an employee of that lender could sign such an affidavit based on their review of the company’s accounting records.  In most of the foreclosure cases currently pending in courts around the country, the mortgages have changed hands many times and there is simply no basis whatsoever for any person to sign an affidavit stating that they have any knowledge whatsoever of who is owed any money whatsoever.  These affidavits are legally insufficient, they’re false and fraudulent.

Affidavit of Lost Note

The third area of Affidavit Fraud is the Affidavit of Lost Note which states, “Your Undersigned Affiant is an employee of the Plaintiff who had posession of the note when it was lost and while we looked long and hard to find the note, it’s just plain disappeared and we just will never find it.”  In cases where the Plaintiff cannot locate the original note, this Affidavit is required in order to “Re-establish The Lost Note”, a technical process which must be followed in order to successfully and honestly proceed with a foreclosure case.  There are two problems here.  First, in many cases, the Affidavit does not include the correct language wherein the Plaintiff asserts that it was in possession of the note when it was lost.  The affidavit states, “the note was in possession of someone (we don’t know who) when it was lost”.  The other variation of this is when the Plaintiff is in possession of the note but they don’t bother disclosing this to the court.

Laws and Rules Just Don’t Matter Anymore, Everyone Hop On Board The Fraud Train!

So if the Plaintiffs and their attorneys are engaging in massive and systemic fraud and the courts are totally aware of this and yet it’s going totally unpunished and unanswered why doesn’t everyone just get on the fraud train? I mean why not?  Well here’s one way that consumers and anarchists could engage in fraud that would totally throw the system into chaos.  If rebels and anarchists and people who just don’t care executed and recorded Satisfactions of Mortgages across the country, it would send the entire foreclosure system into collapse.  A Satisfaction of Mortgage is a one page document that costs $8.50 to record.  It can be produced on a home computer, filled out correctly then sent in along with a money order or cashier’s check.  The Clerk of Court is required to record it and there would be no way of ever knowing where these fraudulently produced satisfactions were coming from.   While the lenders were trying to figure out how to deal with this massive problem, they would have no choice but to stop the pursuit of the foreclosure cases.

Anarchy Is a Crime- Revolution is a Crime.

Make no mistake, doing this is wrong.  It is a crime. A serious crime.  I would not do it and I’m not seriously suggesting anyone should, especially for their own mortgage.  But what if? I mean what if some modern day Robin Hood or Paul Revere set out with a few hundred bucks and a few hours on a computer and started just sending in satisfactions?  And what if, at the same time these same band of anarchist Robin Hoods also filed with the courts “Notice of Voluntary Dismissal and Release of Lis Pendens”?  I mean when the law firms that are prosecuting these cases are so out of touch that they have no idea what’s happening with their files and they have no contact whatsoever with the lenders they claim to represent, it would take them months to figure out if their law office or their client really did dismiss the case or whether this was another one of those Anarchist Dismissals.

But if the system is so broken down that judges are engaging in systematic denial of a defendant’s rights and if the Supreme Court of Florida is acknowledging in writing

that they are aware of widespread and systemic fraud being perpetrated on courts across the country and they’re doing nothing to stop it,

isn’t a little bit of anarchy in order?