By now you’ve probably heard of the massive fraud in foreclosures perpetrated by lenders in their haste to cut costs and process the high volume of forecloses quickly. Some of the biggest issues at the heart of the now nationwide foreclosure moratorium go to the heart of our legal system and the rule of law.
There are two depositions of paralegals at the David J. Stern law firm in Florida that you must read. These two employees describe the climate, culture, and operations of a “Foreclosure Mill“. This blatant disregard for the rule of law is so embedded in the culture there that our very freedoms and trust in the fairness of the egalitarian “American Way are at risk.
The biggest issues are that the Stern law firm (and probably most of the foreclosure industry) perpetrated fraud upon the courts by falsely signing affidavits and creating fictitious legal documents in order to capture fees for processing foreclosures quickly.
I know these are lengthy depositions, but it is well worth reading BOTH documents (embedded below) so that you understand the issues and realize the gravity of our situation should this systemic fraud continue.
My Thoughts on Foreclosure Fraud
Yes, home owners who haven’t paid their loan should lose their homes to foreclosure, but NOT through legal fraud imposed upon them by the banks and their servicers. Are we a 3rd-world nation where bribes and legal malfeasance direct action?
False affidavits are not unlike perjury in the courtroom because an affidavits is similar to a courtroom testimony. Many, many people should go to jail; let’s hope some of those at the top do; not just a few scapegoats.
Deposition of Tammie Lou Kapusta – Law Office of David J. Stern
Deposition of Cheryl Sammons – Law Office of David J. Stern
More About the Foreclosure Mess and Fraud
- Yves Smith Explains the Foreclosure Mess in 10 Minutes (Watch this video!)
- Barry Ritholtz – Foreclosure Linkfest
Fraud Factories: Rep. Alan Grayson Explains the Foreclosure Fraud Crisis