Judge Blasts Bank’s Lawyer and Wipes Out Mortgage in Disputed Foreclosure

punch.jpgForeclosure mills are coming under increasing assault and scrutiny by crafty defense attorneys, and a judiciary that is being pushed beyond their means by the increasingly steady rise of foreclosure filings in Miami, and Florida as a whole.

Recently, Miami-Dade County Circuit Court Judge Jennifer Bailey canceled the homeowner’s debt and mortgage owed to a bank as a direct result of the bank’s willful failure to follow Judge’s Bailey Order. Judge Bailey called the actions of the bank’s lawyer were “contemptuous”. You can read the full court hearing transcript here Judge-Wipes-Out-Homeowner’s-207-000-Mortgage[1].pdf.

The issue in this case began in December of 2009 when Judge Bailey granted the bank’s motion for foreclosure sale of the homeowner’s property. However, the bank had lost the note on the homeowner’s property. As a result, Judge Bailey ordered the bank to post a $414,000 bond to indemnity the homeowner in the event another bank filed a claim against the property in question.

The bank failed to do so, and moved forward with the foreclosure sale. The homeowner’s lawyer then asked Judge Bailey to set the sale aside in light of the fact that the bank had failed to post the bond, and otherwise failed to follow the Judge’s clear court order.

Not only did Judge Bailey agree to the homeowner’s request, but Judge Bailey wiped out the entire debt. In so doing, Judge Bailey complained about the general “chaos and disorganization of lenders and their lawyers.”

This is without a doubt a significant victory for homeowners struggling to keep up with their monthly mortgage payments. It is also the latest in a string of recent rulings from Florida Judges who are beyond frustrated with the bank’s lack of candor with the judicial system. Indeed, Florida’s Attorney General is currently investigating a prominent foreclosure Tampa foreclosure firm due to purported fabrications and allegedly presenting false and misleading documents in many foreclosure cases throughout the State of Florida. These actions by many foreclosure firms have also resulted in the change of certain Rules of Civil Procedure that govern foreclosure cases.

Please contact our office today if you are facing foreclosure. Our team of dedicated attorneys can help you. But don’t delay and call us today.