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Foreclosure Problems in Court Rise due to David J Stern Law Firm

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By : Dywon Erick Dylon    99 or more times read
David J. Stern, a renowned law firm, was titled as a “Foreclosure Mill.” The firm has been accused of several malpractices because of which it is under scrutiny and undergoing court and federal investigations. David J. Stern has been alleged to have filed improper paperwork in front of the court, forged signatures, and illegally notarized affidavits and hired extra staff to speed up procedures that could close a delinquent house as soon as possible. Since the paperwork issue surfaced, the two mortgage titans, Fannie Mae and Freddie Mac, took back all foreclosure cases from Stern, which lead to the layoff of 50 percent employees of the company.

A recent report released on Friday 10 December in West Palm Beach, mentioned that cases that were transferred from the law firm to other firms were posing a big hitch in judicial proceedings. Palm Beach County Clerk’s Office declared that since 29 November until date, there are some 110 cases which have incurred problems while going under court proceedings. The report also stated that handful of houses were sold for a maximum of $240,000 which is considered the peak of prices in Palm Beach in November 2010. Other than that majority of the houses that were sold were as low as $200,000.

The Plantation office of David J. Stern handled large number of foreclosure cases. However, since the law firm sacked its 50 percent workforce, there have been several issues in transferring of cases to other firms, and several legal procedures were not being followed properly. The issues that daily arise in the court are due to improper advertisement of the delinquent houses. In fact, many of the homes that are foreclosed have never been advertised publicly which is a mandatory requirement by the court to process a foreclosure.

This problem came to light when an investor, Dan Cameron, purchased three properties only to know later that the sale was not certified as these houses were not advertised properly. Disgusted he said, “It is going to be a complete bottleneck again.”

In addition to improper advertising, other problems faced by the courts are cancellation of several cases due to confusion related to which bank represents a particular case. The 110 properties that were sold without a bid from banks are in all probabilities going back to the judges. Only 15 cases are lined up for next two weeks, according to sources; this will allow sometime to find a solution to deal with Stern handled foreclosure cases.
Original post: on, your source of HUD foreclosures.

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