By Gina Jordan
http://stream.publicbroadcasting.net/production/mp3/wfsu/local-wfsu-917806.mp3
Tallahassee, FL – Three Florida law firms are under investigation by the state for their handling of foreclosure cases. As Gina Jordan reports, the Attorney General's Office says the firms may have engaged in unfair and deceptive practices.
It's common for mortgages to be bought and sold by different lenders. Investigators say there are potentially thousands of cases where attorneys prepared paperwork with the signatures of lenders that no longer owned the mortgages. Mary Leontakianakos, Director of the Economic Crimes Division, says this could be sloppy work or criminal fraud. She cited one firm that's handling seventy-thousand foreclosures a year.
"Ninety-percent of them are resolved by default, which means the homeowner doesn't even come to court or have an opportunity to be heard. So they need to be done right, and my concern is that the consumers get due process."
The allegations suggest improper documentation was filed without the knowledge of the homeowners. The Attorney General's Office is also investigating whether the law firms created affiliated companies outside the United States to prepare the documents.