Fla Appeals Court 'Green Lights' Class Action Against Foreclosure Mill Accused Of Clipping Delinquent Borrowers In Bogus Loan Reinstatement Fee Ripoff

In West Palm Beach, Florida, The Palm Beach Post reports:

• As many as 2,000 homeowners suing the law firm of self-proclaimed foreclosure king David J. Stern over excessive attorney fees and costs won a major victory [last week] when an appeals court blessed the group's class-action status.

• "We are very excited," said Louis M. Silber, the West Palm Beach attorney who filed the case in January 2007 — the first class-action lawsuit filed against Stern and his Plantation-based law firm stemming from foreclosure fraud accusations.

• In a four-page opinion, the 4th District Court of Appeal upheld the findings of Circuit Judge Thomas H. Barkdull,, who decided the complaints and circumstances of the homeowners were so similar that they would best be handled in a class-action lawsuit.

• Members of the class are homeowners who received letters from Stern's firm between Jan. 18, 2003 and Feb. 19 2009 offering to reinstate their loans with Wells Fargo by paying reinstatement charges.(1)

For more, see Judge OK's class-action status for homeowner lawsuit against Florida law firm.

See also South Florida Sun Sentinel: Court upholds decision on Stern foreclosure class action suit (Homeowners claim they were charged excessive fees for title searches and examinations, being served foreclosure papers, legal work — and in some cases, were billed for expenses and mortgage payments not yet due).

For the ruling, see Law Offices of David J. Stern, P.A. v. Banner, Case No. 4D09-3928 (Fla. App. 4th DCA, December 29, 2010).

(1) The class action lawsuit claims that the foreclosure mill's alleged misbehavior constitutes violations of the Florida Consumer Collection Practices Act and the Florida Deceptive and Unfair Trade Practices Act.