Tuesday, January 11, 2011

Fla. Continues "Burying Its Head In Its Sandy Beaches" In F'closure Mess Despite Recent Actions In Other States; Critics Attack 'Delusional Behavior'

The Palm Beach Post reports:
  • Fed up with the foreclosure chaos, the New Jersey courts demanded that banks prove the integrity of their home repossession systems or face shutdown. To demonstrate the need for the Dec. 20 order, New Jersey cited flaws in six Florida foreclosure cases, including three in Palm Beach County, as examples.(1)

  • In Nevada and Arizona, attorneys general last month sued Bank of America for a dual-track foreclosure system that offers homeowners hope with a loan modification, while at the same time taking away the home in court.(2) Called deceptive and labeled consumer fraud in the lawsuits, the practice is also prevalent in the Sunshine State.

  • And on Friday, the Massachusetts Supreme [Judicial] Court issued a bombshell ruling against banks' ability to foreclose on homes - a decision could reverberate nationwide.(3)

  • The moves by other states to address the foreclosure morass has Florida homeowner advocates and defense attorneys asking why more isn't being done here. [...] But as hundreds of homes continue to sell at auction each day and the variations of alleged malpractice mount, critics charge that Florida is burying its head in its sandy beaches, waiting for an ocean breeze to blow the whole thing over.

For more, see State guilty of 'delusional behavior' in slow response to foreclosure chaos, critics say.

(1) See Legal Services of New Jersey Report and Recommendations to the New Jersey Supreme Court Concerning False Statements and Swearing in Foreclosure Proceedings, November 4th, 2010.

(2) For the lawsuits, see:

(3) See Mass. High Court Ruling "A Train Wreck For F'closure Industry" As Banks Slammed In Bay State Beat Down; 'Clouds' Over Title To Homes Darken Statewide.