Closing of law firm Steven J. Baum alters NY foreclosure landscape

TRD New York /
Nov.November 22, 2011 08:49 AM

Steven Baum
Big changes could be coming to the New York State foreclosure process now that law firm Steven J. Baum PC, which handled about two out of every five foreclosure cases in the state, has shuttered, the International Business Times said.

Baum announced it was closing yesterday, after being investigated by the U.S. District Attorney and blacklisted by Fannie Mae and Freddie Mac for allegedly mishandling foreclosure documents. The firm also generated controversy when photos of employees dressed as foreclosure victims were recently published in the New York Times.

According to the International Business Times, Baum’s business would likely be divided among many local firms, who have intimate knowledge of the different laws in various regions of the state. Stuart Saft, partner and chair of Dewey & LeBoeuf’s global real estate department, said having local firms take over foreclosure accounts would likely benefit distressed homeowners who will get better access to the attorneys handling their cases.

But because foreclosure cases that were being reviewed by Baum will likely have to be restarted by a new firm, the move could further delay a process that’s already moving at a snail’s pace. But rival attorneys see the Baum closing as a step in the positive direction, as the firm’s owner “gave the legal profession a black eye,” according to one attorney. [IBTimes]

Related Articles

Nationwide foreclosures are at a 15-year low (Credit: iStock)

Foreclosures nationwide fell to 15-year low in 2019

494 Broadway and Thor Equities' Joe Sitt (Credit: Google Maps)

Thor faces foreclosure on site where lender says it’s seeking “unrealistic rents”

Maefield Development's Mark Siffin and 20 Times Square (Credit: Maefield)

Lender forecloses on Maefield’s billion-dollar Times Square project

Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

Home foreclosures dropped nearly 20% in Q3, report shows

Home foreclosures dropped nearly 20% in Q3, report shows

Manhattan’s 10019 zip code, which covers Midtown, Times Square, Herald Square and Midtown South, saw the most foreclosures in the borough with eight. (Credit: iStock)

Manhattan foreclosures soar 118%, driven by mortgage defaults

15 East 63rd Street and Oleg Cassini (Credit: Google Maps and Getty Images)

Oleg Cassini’s former UES headquarters faces foreclosure

Mayor Bill de Blasio and Frank Carone (Credit: Getty Images)

City tapped De Blasio donor to take over foreclosed properties