Florida Supreme Court Hears Arguments on a Potentially Pivotal Foreclosure Fraud Case

foreclosure defesne fraud.jpgThe Florida Supreme Court recently heard arguments on a foreclosure case that could have sweeping consequences for foreclosures in the entire state of Florida.

What is particularly interesting about this case is the fact that the Florida Supreme Court is hearing arguments on a case where the actual litigants have actually settled their differences. Despite the settlement, the Florida Supreme Court deems the matter important enough to address.

Good thing they did too. Our Miami foreclosure defense lawyers have been addressing the issues associated with the banks efforts to push through foreclosures for some time despite the fact that some banks lack the necessary evidence to prevail in that foreclosure. These issues stem from improper service of process, robo-signing allegations, and misconduct committed by certain law firm that handled the bulk of foreclosures just a few years ago.

These problems have resulted in many banks assessing their chances of success in litigation and deciding that it would be cheaper to just dismiss the lawsuit. Banks then often times attempt to re-file those lawsuit down the road. But they encounter problems when they do so, and those problems may even result in yet another dismissal. And the second dismissal could be fatal to any other effort to attempt to foreclose on the property.

The case that the Florida Supreme Court agreed to hear is addressing just that very issue. The case, known as Roman Pino v. Bank of New York Mellon, originated from the robo-signing scandal that emerged in 2010 when it was revealed that the banks and their law firms had hired and paid individuals to sign documents that they knew nothing about in an effort to push foreclosures through the judicial system.

The original foreclosure action filed against Mr. Pino was dismissed once it appeared as though the loan documents were fraudulently procured. The bank then re-filed the same lawsuit some three months later, but with difference documents. The attorney representing Mr. Pino has argued that the bank should not be allowed to use a voluntary dismissal to dispose of a case that was dependent on fraudulent documents only to re-file the same lawsuit but with different documents.

We have seen the voluntary dismissal tactic used many times with our clients. And that creates opportunities for many struggling homeowners to potentially get back on their feet, or otherwise chart a course of action that is best for them. Our Miami foreclosure defense lawyers have assisted many homeowners in buying enough time to reach the solution that is right for them. There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it. Contact us today.