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Bankruptcy Houses for Sale Can be Impacted by Florida Case

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By : John Cutts    99 or more times read
A court case wherein a homeowner has accused the Bank of New York of foreclosure fraud is expected to have a far-reaching impact on all foreclosures cases in Florida and may even affect cases related to bankruptcy houses for sale. An appeals court has reportedly asked the state Supreme Court to handle the case due to its public significance.

According to legal experts, the outcome of the case will have a huge impact on all foreclosure actions in the state, including Miami foreclosures and other lawsuits related to homeownership in various areas of Florida. Reports showed that the original foreclosure lawsuit filed by the bank against Palm Beach homeowner Roman Pino has been withdrawn after Pino and his lawyer asserted that the bank should have an assignment in order before it can foreclose on the property.

The case was then voluntarily dismissed by the bank which ended Pino's attempt to prove that he was a victim of fraudulent foreclosure. The bank reportedly refiled the case in August of 2009 and that particular case is currently pending. According to some foreclosure lawyers, several lenders involved in Florida house foreclosures cases have used the same tactic of withdrawing an initial lawsuit only to refile it again.

A big number of foreclosure and bankruptcy houses for sale owners have complained against this type of tactic allegedly used by a number of lenders. Local reports stated that the original lawsuit was withdrawn by the bank during the time that Pino and his lawyers are about to get depositions from employees of the law firm that represents the bank in an effort to trace the creation of the assignment.

The Fourth District Court of Appeal, which sent the action to the high court, has stated that it agreed with the initial ruling of the lower court with regards to dismissal, but considers the case significant, particularly for other foreclosure houses cases, hence the decision to send it to the Supreme Court.

Legal experts have stated that, if the Florida Supreme Court decides to accept the case and issues a decision in favor of the homeowner, it will affect thousands of foreclosure and bankruptcy houses for sale cases in the state that concern allegations of faulty documentation and fraudulent activities by foreclosing lenders.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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