Florida foreclosure defense attorneys have been saying for years that banks and their lawyers are committing fraud against homeowners, and last month, the Florida Attorney General Bill McCollum decided to do something about it. In addition to one foreclosure firm that was already under investigation, the attorney general's office has launched investigations against three other law firms that represent lenders in foreclosure actions.

In February this year, the Florida Supreme Court cracked down on lender fraud by requiring attorneys and banks filing foreclosure actions to verify that their allegations and paperwork are correct. Unfortunately, it appears that many instances of fraud are still occurring.

The Economic Crimes Division of the attorney general's office received complaint after complaint from homeowners and their attorneys in recent months. Those complaints led to the investigation that is now underway.

What Will the Investigation Look to Determine?

Investigators with the attorney general's office are focusing on finding out whether the three firms created and filed fraudulent documentation with Florida courts. Part of that will include determining whether the firms created off-shore companies to create the documentation, even if the firms themselves did not.

One foreclosure defense lawyer heralded the announcement of the investigation as "confirmation that something is wrong."

With Florida's high foreclosure rate, the outcome of this investigation could have a serious impact. Homeowners across the state are holding their breath, hoping for justice against these foreclosure mills that have wronged so many people already.

Individuals who are facing foreclosure should consider speaking with an experienced foreclosure defense attorney. Now more than ever, it is important to make sure your rights are protected against fraudulent foreclosure actions.

Source: Herald Tribune, "State subpoenas records from 'foreclosure mills,'" Todd Ruger, 11 Aug 2010