The Real Deal Miami

Foreclosure fraud allegations stack up at the Florida Bar

May 11, 2011 09:47AM

Four times as many foreclosure fraud cases, about 226, are pending in the Florida Bar than six months ago, according to the Sun Sentinel, as many property owners attempt to save their homes by taking on their lenders’ attorneys. The Florida Bar has opened about 200 new foreclosure grievance investigations since November.

Some of the law practices involved have been labeled ‘foreclosure mills,’ processing thousands of foreclosures per month, with the highest rates of foreclosure in Broward and Palm Beach counties. As a result, allegations of false paperwork and sloppiness are rife.

So far, the bar has issued sanctions against 53 attorneys involved in 145 foreclosure-related cases but there have been no official fraud-related reprimands. [Sun Sentinel]