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May 11, 2012

Florida Supreme Court Weighs Key Foreclosure Case 
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In news on the housing crisis, the Florida Supreme Court heard arguments
Thursday in a major case that could reverse hundreds of thousands of
foreclosures and allow severe financial penalties against banks in one
of the states hardest hit by foreclosure fraud. The lawsuit, Pino v.
Bank of New York Mellon, stems from the widespread practice of
"robo-signing," where foreclosure documents are rapidly signed without
proper vetting. At issue is whether banks that file fraudulent documents
can simply dismiss a foreclosure case, then re-file it later with new
paperwork. The case could have national ramifications since voluntary
dismissal is a main bank tactic for mortgage fraud allegations in the
more than two dozen states requiring judicial approval for foreclosures.

 

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