Associate AG to Testify that Florida Foreclosures are in 'Total Disarray'
An associate state attorney general is expected to tell state lawmakers today that the state’s foreclosure system is in “total disarray.”
According to her prepared testimony, Patricia Conners will tell the Senate Banking Committee of a “virtual morass” of fake and faulty documents, to which so-called “foreclosure mill” have contributed significantly, reports the South Florida Sun-Sentinel.
Among the remedies that Conners is expected to recommend:
Loan servicers should be required to “get the paperwork right” before filing for foreclosure.
Incentives should be changed to make loan modifications, rather than foreclosing, a financially attractive option for lenders and real estate investors.
The short sale process should be streamlined.
The Post on Politics blog of the Palm Beach Post provides additional details about the hearing today.
ABAJournal.com (Aug. 2010): “Fla. AG Probe: Did 3 Law Firms Get 1,000s of Foreclosure Judgments By Possible Wrongdoing?”
ABAJournal.com (Oct. 2010): “Backlog Worsens For U.S. Courts As Foreclosure Proceedings Face Scrutiny”
ABAJournal.com (Nov. 2010): “Stern’s Law Firm & Related Co. Cut Staff By 70% After Fannie and Freddie Pull Foreclosure Files”
ABAJournal.com (Dec. 2010): “Fla. Woman’s 25-Year Mortgage Foreclosure Battle a Cautionary Tale for Lenders”