Representative Alan Grayson of central Florida says banks are “fraud factories” when it comes to foreclosures

“There is one set of laws for the banks and another set of laws for everyone else”.

Rep. Alan Grayson is alleging that banks are engaged in a deliberate and ongoing fraud with their processing of foreclosures.  According to him the banks do not own notes that they are foreclosing on and thus the have no legal standing to foreclose.  The banks are therefore creating a system to keep foreclosures happening in spite of the legal prohibitions.

He is alleging that banks hire what he calls “foreclosure mill law firms” to forge the documents necessary to facilitate the foreclosure.  Apparently some of these foreclosure mills are featured in the New York Times.  The Florida Attorney General has launched an investigation into these foreclosure mill law firms to see if they are skirting Florida law.  Could they be doing the same in California?

Representative Grayson talks about the “robo-signing” but he is alleging here a far more widespread fraud.  He talks about signature forgery on foreclosure documents among other things.  He also relates that banks make money on these foreclosures because in Florida a foreclosure incurs fess of $6000 that is reimbursed by Fannie Mae and Freddie Mac.

So it appears that there is a financial incentive to foreclose which would explain why the banks are so quick to do a foreclosure with my clients.  Check out Alan Grayson’s video at   Stay tuned as the foreclosure crisis deepens and changes daily.  If the banks are doing any of this then I don’t see how they can continue to et away with it.  Eventually the whole foreclosure process could be halted nationwide.