I've been meaning to do a post on the rampant fraud in the foreclosure industry. Lawyers, on behalf of their bank clients, are lying about the ownership of a home. Often banks do not hold the mortgages to your homes.
Nevertheless, banks and law firms know they can exploit the legal system. If you're a homeowner who has been sued by an unscrupulous banker or law firm, you can't possibly know whether you're being wrongfully sued. Lawyers use your unsophistication to steal your homes.
They also used to lie to judges. More judges are realizing that banks cannot, in many cases, prove that their own your own. "Produce the Note."
Here is what one judge said in a written order about one Florida law firm:
the Court finds by clear and convincing evidence that WAMU, Chase and Shapiro & Fishman committed fraud on this Court [and that these] acts committed by WAMU, Chase and Shapiro amount to a knowing deception intended to prevent the defendants from discovery essential to defending the claim and are therefore fraud.
It is also unclear whether an attorney or law firm representing a lender can verify a mortgage foreclosure complaint based upon information he/she/it obtained from the client or other parties, including the holder of the note and the servicer.
In other words, these foreclosure lawyers are asking that courts excuse them from any ethical obligation to investigate the truth. Just sue! This is a serious issue that we hope the Florida State Bar will begin investigating.
This is also yet another example of the frivolous litigation banks and other large companies bring against poor and middle class people. Everyone is inflamed when they hear about the McDonald coffee cup case. Why aren't people outraged that J.P. Morgan is attempting to steal a home by committing fraud on a court?
Has everyone adopted the Megan McArdle-Todd Zywicki ethos? Do we now all believe that banks are incapable of lying or committing fraud, as only the little people have moral obligations?