PROBE: Whistle-blower alleges law group padded expenses, kept refunds due clients. This is a story about corruption based on greed, endless opportunism on the “plight” of those who can least afford it. The abuse and insults to distressed homeowners just never seems to end.
Was there not enough money made on the previous housing bubble when it was inflating up to the 2008 “burst”? With the “30 to 1” securitization food chain party, lenders and brokers selling their “toxic waste” to institutional investors, and then immediately short selling the very same securities knowing from the “inside” that the security would fail. One would think enough “greed” had already taken place. WRONG, the enormous amount of “fees” that the foreclosure mills have generated, foreclosing on folks is obnoxious. Fees paid by homeowners that should have had their mortgages modified, or frankly “forgiven” altogether Icelandic style. Greed has become institutionalized, just the “standard” to follow it seems.
Colorado functions more or less like a “Judicial foreclosure” State. Which means that the banks can obtain “deficiency judgments” on homeowners for unpaid “balance” amounts at the foreclosure sales. The balances of course include “attorneys fees” for processing the foreclosures on top of the loan balance and all the other “fees, costs, and expenses” the law firms can add on, and get away with.
This article by By David Migoya The Denver Post Posted: 08/03/2013; shines light on some of the abusive behavior by those looking to gain by the unfortunate circumstances of others. What we would love to read about, is the law firm helping folks stay in their homes. Guess we’ll have to wait a while on that one (like into the next lifetime).
Check out these quotes from this article;
“Colorado’s second-largest foreclosure law firm allegedly padded attorney expenses, pocketed refunds due its clients and made millions of dollars by running side companies affiliated with its foreclosure work and overcharging for it, a lawyer-turned-whistle-blower has told state investigators.”
“Investigators also say the partners have made more than $6 million in profits in the venture since 2009, when the Colorado legislature required the postings.”
“The unsealed documents provide a clearer picture of what Hendrick told investigators, the first details of which emerged in a Denver District Court hearing last week. Aronowitz argued to seal the case from public view, but District Court Judge R. Michael Mullins disagreed and opened the hearing. Documents in the case file were unsealed Friday.”