Group asks for investigation of foreclosure lawyers

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Carol Forsloff - In the midst of a continuing crisis, there is now a group that is asking for a Congressional investigation of lawyers involved in foreclosures.  Just like some of the banks have manipulated data and done bad things, attorneys are accused of doing it also.

A group asking for this investigation with a petition available for citizens to sign declares: "Although increasing numbers of courts are continuing to reject improper and fraudulent foreclosures, the Congressional Foreclosure Panel examination of mortgage services and foreclosure practices did not include foreclosure lawyers.

Lawyers are officers of the court; knowledge of applicable laws and civil procedure is not required from mortgage lenders.
In states that require judicial foreclosures, lawyers are the ones
who file lawsuits to seize and sell property; and lawyers are
responsible for filing and recording foreclosure property deeds.

An investigation could prove helpful to sorting out whether
improper and illegal foreclosure proceedings are linked to any
self-dealing conduct disadvantaging lenders, investors, homeowners, and
city governments. . .”

Barbara Jackson, an attorney as well, points out the serious concerns involved in the mortgage crisis with reference to attorneys.

This is a citizen effort at revealing problems going on within the foreclosure process that might be posing serious problems to homeowners.  As is pointed out on the online site by Jackson's group, it is hoped that a Congressional investigation will allow a detailed examination of what has been happening with the legal part of the foreclosure business to see if there has been a disadvantage done to lenders, investors, homeowners and city governments.

The concern involves the questionable foreclosures and irregular activities that can lead to deeds that are false or otherwise useless or title insurance companies refusing to proceed because of some of the defective foreclosure proceedings.

An example used involves Freddie Mac, Fannie Mae and other lenders who had files removed from David J. Stern,  a foreclosure lawyer.  Evidence provided by the group asking for an investigation shows that these problems existed for some time until the attorney general of Florida took action, and that was only after serious complaints had been made and investigative reporters at Mother Jones. followed up with reports on it.

Dishonest dealings from attorneys can lead to
useless property deeds that impede real estate sales. Increasing numbers
of title insurance companies are refusing to cover foreclosed
properties; and certain mortgage default claims, are being denied
because of  defective foreclosure

proceedings.

The petition asking for a federal investigation can be found here at this site.