Florida Default Law Group: Foreclosure foul-up could cause court penalties for lawyers

A judge says the firm gave false information; state also investigating.

A law firm under state investigation for its handling of foreclosure cases could face court sanctions in St. Johns County for giving a judge false information about who owned a mortgage.

Circuit Judge J. Michael Traynor  threw out a foreclosure suit this month after concluding the plaintiff listed in a case filed by Florida Default Law Group never owned the note.

Lawyers compounded that problem, the judge decided, by filing paperwork later that named the real mortgage holder, HSBC Bank, but falsely described the bank as a “successor” to the original plaintiff, U.S. Bank National Association.

Because U.S. Bank really never held the note, what the lawyers were claiming wasn’t true, the judge said.

Read more: http://jacksonville.com/news/metro/2010-05-25/story/foreclosure-foul-could-cause-court-penalties-lawyers

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