JUSTICE DECEIVED: MFY’s New Report Unveils How Foreclosure Law Firms Subvert State Regulations and Harm Distressed Homeowners

Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners, released in conjunction with a class action lawsuit against Steven J. Baum P.C., found that large foreclosure law firms file foreclosure proceedings but fail to file the specialized Request for Judicial Intervention and Due Diligence Attestation, which would cause the cases to be assigned to a judge, trigger a state-mandated settlement conference, and connect the homeowner to housing counseling and legal services. Instead, banks reject homeowners’ payments and add on more fees and interest, making it less likely that the homeowner would be able to get a loan modification. The Report includes recommendations on how the problem could be corrected.