Foreclosure King Toppled

Foreclosure King Toppled

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Florida has seen its share of foreclosures and financial hardship among homeowners in recent years, but there's one person in the Florida real estate market that seemed to prosper, even as thousands of people lost their homes. Foreclosure attorney, David J. Stern is someone who has gained quite a bit of notoriety in the state--both for his lavish lifestyle, and for allegations of fraud that were recently lobbed against his company.

"Foreclosure mills" are law firms that plow through a high number of foreclosures on behalf of the bank, for less than what they'd normally cost. Stern ran the largest foreclosure mill in the state, which at its peak, handled roughly 75,000 cases a year.

Banks would commission Stern's company and pay them nearly $1,500 to successfully complete a foreclosure within a set period of time. If the foreclosure became stalled in any way, the banks would pay less, so the faster Stern's people could handle their caseload, the more money the company would make.

Working at such a feverish pace made Stern an extremely wealthy man, with multimillion-dollar houses, private jets, and a collection of high-end vehicles. This breakneck speed however, put an inordinate amount of pressure on staff to keep up with the harried pace. To maintain productivity levels, it's alleged that Stern's staff engaged in the shady practice of robo-signing, which involves signing a multitude of documents without verifying the information.

Legally, those processing foreclosures are required to review the documents, make sure that the foreclosure is just, and to sign the papers in front of a Notary Public, whose stamp validates the report. With so many foreclosure cases coming before them, it's alleged that Stern's chief operating officer, Cheryl Samons signed off on thousands of documents without ever looking at them to make sure that the details of each case were correct, and that the foreclosures were warranted.

According to court testimony, not only did Samons engage in robo-signing, but she also had staff members forge her signature, and use a fake notary stamp in order to clear more cases. There are also allegations that documents were improperly handled, lost, and hidden from auditors.

Due to these acts, there are potentially a large number of homeowners in Florida who were wrongly foreclosed upon. A class action lawsuit and an investigation from the Florida Attorney General's office have commenced to determine the nature and extent of abuses that may have occurred at Stern's law firm. Unfortunately, many people have already endured the emotional and financial trauma of losing their homes, and face a long road of trying to right this grievous wrong.

About the Author:
View listings for real estate in Stuart Florida at Waterfront-Properties.com. Our market specialists will show you the wide selection of Jupiter FL real estate and answer any questions you may have about this popular oceanfront community.



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