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Case of Florida’s Lender Processing Services shows need for aggressive foreclosure defense in Miami

Lender Processing Services, a Jacksonville company that processes more than half the nation’s foreclosures, is under heavy fire amid numerous allegations, including that a subsidy, Default Solutions, used questionable or falsified documentation in thousands of foreclosure cases, Reuters News reported.

Consulting a Miami foreclosure defense lawyer is your best option for help stopping foreclosure in South Florida or for help dealing with deficiency judgments, strategic default or home-loan modification. As banks and their law firms continue to be investigated for rampant wrongdoing, consumers may be successful in seeking to waive deficiency judgments, remove damaging credit marks or seek monetary damages.

Central to the issue are the false documentation that banks and their attorneys relied upon to foreclose on thousands of properties after the original loan notes were lost or packaged and sold as investments.

Another subsidy, called DocX, is accused of questionable signing and notarization practices, which also allegedly occurred in LPS’s own offices. To distance itself from the “robosigning” scandal (in which law firms and banks are accused of signing thousands of foreclosure documents without proper verification), the company allegedly shifted signing activities to outside firms and provided personnel to work at the new signing operations.

A criminal investigation is under way in Jacksonville, involving federal prosecutors and the Federal Bureau of Investigation. The Florida Attorney General’s office is also investigating. Four class-action lawsuits have also been filed against the company. In one of those cases, being heard in Mississippi, the U.S. Department of Justice has signed on as a plaintiff and is alleging the company extracted millions of dollars in kickbacks from law firms via an illegal fee-sharing arrangement in exchange for doing foreclosure work for them.

The lawsuits allege LPS pressed for speed, resulting in almost instant filing of foreclosure documents. Documents were usually prepared by clerical staff, not attorneys, and were often filled with inaccurate information, including how much the homeowners owed. However, the documents were nevertheless signed en masse without anyone at the firms verifying them for accuracy.

If you need help with foreclosure issues in Miami or the surrounding areas, including short sales, deficiency judgments, strategic defaults or other help for Miami homeowners, contact Jacobs Legal for a confidential appointment to discuss your rights. Call (305) 358-7991.

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