Illegal foreclosures in the state of Florida by banks have been a real problem. After the housing market collapsed a few years ago banks began to speed through the legal process and kick people out of their homes. Recently, however, reports have been coming out that homeowners had no actual knowledge of the exact terms in their mortgages. As a result, many of the foreclosure suits were either dropped or dismissed due to the overwhelming number of cases with improper documents.
Lawsuits Surrounding Illegal Foreclosures In the State of Florida
Yet, with the market improving many banks and lenders have reopened the door to several of the foreclosure suits. For instance, in Pino v. Bank of New York Mellon the lender started to foreclose on Mr. Pino after he fell behind on his mortgage payments. When Mr. Pino’s attorney established that the mortgage documents were backdated and were signed by an employee instead of an executive the case was dropped. Nevertheless, the bank recently refilled the case with correct documents.
In an effort to dismiss the case once again Mr. Pino’s attorney argued that it should be dropped as a penalty for initially using fraudulent documents. Because Mr. Pino worked it out with the bank the court never decided on the case. However, the case ended up in the appellate court and the judge stated that it was a rampart problem throughout the state. As a result, the Florida Supreme Court will soon decide if a bank can avoid sanctions for fraudulent documents by voluntarily dismissing the case.
The high court accepted the case and will decide whether a bank can avoid sanctions for filing fraudulent documents in a case simply by voluntarily dismissing it. Because Florida allows a case to be to be refilled if voluntarily dismissed this issue has become a matter of concern. Many homeowners believe that the trial court should be allowed to overturn these dismissals if the initial suit was based on fraudulent documents. On the other hand, lenders believe this would discourage home loans and have a damaging effect on the economy. Regardless, this issue has become a hot topic in Florida and it will be decided in early 2013.
Find Out What to Do Before You Give Up
Before you give up on your home in the midst of a foreclosure, consult with Winter Park foreclosure attorney Eric Lanigan or Roddy Lanigan of Lanigan and Lanigan, P.L. Talk to the Lanigans about the options that may be available to you based on your financial situation.