Florida Bar Association Holds Attorneys Responsible For Reporting Foreclosure Fraud
According to an article in the Florida Bar Journal, the Florida Bar Association considers it an attorney’s responsibility to notify judges of potential foreclosure fraud when working on foreclosure cases – even if the property has already been foreclosed upon and even been sold at auction[1]. The types of fraud particularly noted are “robo-signed affidavits and forged notary stamps.” Given that in the 1.2 million foreclosures filed in Florida since the beginning of 2007, “tens of thousands of forged signatures, backdated documents and other problem paperwork” have been detected already, this new mandate could further add to the massive foreclosure backlog threatening the engulf the state’s housing market.
Ultimately, however, lawyers must try to do the right and best thing in unprecedented circumstances, then wait for the judge to react, say Florida attorneys. “There has never been a problem like this before,” explains Margery Golant, who teaches a foreclosure course for the Bar and is based in Boca Raton. Cynthia Booth, one of the Bar’s ethics attorneys, emphasizes that “You try to cause the least amount of harm as possible to the client” when reporting fraud, but added that if fraud is suspected, the lawyer’s “duty to the court supercedes…duty to the client.” This means that even if the lawyer is working with the lender, he or she still must report suspected “fraudclosure” to a judge in a private hearing.
As yet, Bar officials have not determined what the results of the fraud notification should or could be. They say it is “unclear what judges will do about fraud in a finished foreclosure,” but that it is likely proceedings will stop in pending cases so that an investigation can be conducted[2]. This sounds a lot like lawyers trying – albeit belatedly – to “do the right thing.” However, it also turns lawyers directly against their clients in some cases. Do you think that this new Florida Bar policy is appropriate?
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[1] http://www.tcpalm.com/news/2011/feb/01/florida-bar-says-foreclosure-lawyers-must-report/
[2] http://www.miamiherald.com/2011/02/02/2046181/fla-bar-says-foreclosure-fraud.html
Lets face it. There were alot of unscrupulous people out there taking advantage of a situation. If the attorney condoned it, then he is as guilty as the culprits.
I do not believe for one minute that an attorney, working for a bank, is going to turn in his client. The bar in this state is almost a corrupt as its members. Don’t believe me? Then try and file a compliant against an attorney and see what happens.
This is a PR stunt by the bar to make it appear that they are ethical. Reporting of problems ain’t gonna happen. Oh, there may be one or two instances in which an attorney brings this to the court’s attention but it will only be in case where it is so egregious (and where the attorney may be caught too) that the revelation is made to the courts.
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