FLORIDA BEWARE!! FBA non-judicial foreclosure initiative

Florida Bankers Association, controlled by national and supersize regional banks are trying to convert Florida to a “non-judicial state.”


Start writing letters and get others to write letters to the Republican controlled Florida legislature. This effort will not only deny homeowners essential rights it will vastly increase the pace of foreclosure sales, thus crashing the market values of homes across the state even further. Taxes will go up, services will go down.


Banks say cut out the courts

By James Thorner, Times Staff Writer

Published Thursday, January 28, 2010

If bankers get their way, Floridians facing foreclosure could be kicked out of their homes in as little as three months.

The Florida Bankers Association, the 400-member-strong lenders’ lobby, has presented state legislators with a bill to upend decades of Florida law and establish “non-judicial” foreclosures in Florida by July 1.

What’s a non-judicial foreclosure? Banks would accelerate foreclosures against defaulting homeowners by bypassing the courts. Judges would no longer rule on foreclosure cases.

Some states — 37 in fact — already grant that fast-track foreclosure authority, including California, Georgia, Alabama and Texas. But Florida, with its plethora of vacation and retiree homes, has always been big on homeowner rights.

If you’re a financially strapped Florida homeowner — 62,719 Tampa Bay properties got foreclosure notices last year — the 53-page bill contains worrisome signs:

• Non-judicial foreclosures must conclude in no less than three months and no more than a year. Most Florida foreclosures take a year to 18 months to work through the courts these days, longer if a lawyer fights a successful rear guard action. So in 90 days banks can theoretically auction the home out from under you.

The Florida Supreme Court’s newly endorsed mandatory mediation for lenders and homeowners would effectively go bye-bye. The bill provides only for informal meetings between creditors and debtors.[Editor’s Note: This triggered the FBA action. By ordering mediation, the creditor/lender would be required to be disclosed and the whole scheme would fall apart]

• Even after homeowners are evicted, banks can still pursue them for unpaid mortgage debt. But banks will waive that right if homeowners avoid trashing or stripping the house before the new owner takes over.

The bankers association has titled the bill The Florida Consumer Protection and Homeowner Credit Rehabilitation Act. Association president Alex Sanchez views the bill as a way to break a foreclosure crisis partly caused by mortgage fraud. [Editor’s Note: Old trick — name it something that conveys the exact opposite meaning of the bill].

He offered a list of innocents the bankers aim to help: neighbors annoyed by abandoned houses next door; condo associations pursuing dues from properties in legal limbo; cities grappling with urban blight; and judges overloaded with thousands of foreclosure cases.

“We don’t want the property. We’re not into the property management business,” Sanchez said of bankers. “We want to get a property out of the courts and sold to a productive Florida family.”

Finalizing a foreclosure is time-consuming and expensive. The longer a property lingers in the courts, the longer banks get no mortgage income from the property. One Tampa mortgage banker revealed this month that each foreclosure can cost lenders an additional $30,000 in legal fees.

The law would apply to foreclosures after July 1, not old cases already in the courts. Kristopher Fernandez, a Tampa foreclosure attorney, blames the banks themselves for much of the judicial foot dragging.

“These cases are stuck in legal limbo because banks don’t want to push foreclosures,” Fernandez said. “I’ve seen cases where nothing is done. The lenders don’t want these homes back. They know they have to pay assessments once they take them back.”

Pinellas-Pasco Chief Judge Thomas McGrady backs up that point. McGrady has talked about a “dam” in the courts from banks reluctant to schedule sales of foreclosure homes.

What’s the chance of this legal revolution getting consideration? The Florida Legislature convenes on March 2. As of yet, the bill has neither an official number nor formal sponsors.

With populism resurgent and anti-banker attitudes rife, passage could be a stretch. Gov. Charlie Crist would have to sign a pro-banker bill as he’s contesting a U.S. Senate seat with state Rep. Marco Rubio.

“We’ve had conversations in both chambers to have it filed,” said Anthony DiMarco, the bankers association’s executive vice president of government affairs.

“Sure, it’s a change in Florida law. But it will help us get to the bottom of the foreclosure crisis faster.”

38 Responses

  1. If you make a defense and loose a Summery Judgment to foreclosure in FLORIDA, and then enter Bankruptcy court, can you argue the same defenses when the Fake Lender shows-up to ” proof of claim ” the debt??

    Suffice, if the Proof of Claim ( ON the Mtg Debt ) is a Fraud, will the Judge dismiss the lien or Sanction the Claimant? Seems Bankruptcy court could offer another Venue to argue.

    If the claimant can’t show ownership of the Promissory note, what standing could he have?

  2. I made a video for those who don’t like to read and can study what is happening over and over. 3 parts but worth watching.


  3. Seems Deficiency Judgments are much more of a problem than I imagined. Not a reason to change from a judicial state to a non-judicial state but all should beware. See below from CNN. Also, debt buyers are buying the loans at steep discounts – making profits on foreclosures – and the greed does not stop there.

    Mortgage lenders pursue homeowners even after foreclosure – Yahoo! Finance

  4. Have your voices heard.


    Share your your comments at the Florida Sun-Sentinel Online editorial Board Blog too.


  5. Please send a protest letter/fax/email to your Floridian legislator before he/she considers passing this new law. You can copy my letter and customize it any way you like ..

    Please don’t fall asleep while the fox is circling your hen house . Take action !


    To :The Florida State Legislature

    From : A Florida Resident

    Ref: The Florida Bankers Association 400-member bankers association

    Proposal to change the foreclosure laws in the state of Florida into a non-judicial State.

    It seems the Bankers Association is trying to push legislation that only benefits the

    Bankers..“ The Florida Bankers Association would prefer that foreclosures skip the

    auction process and the courts entirely”.

    It would become a much easier transaction , and a fast-tact tactic for the “ Banks or

    Lenders “to continue committing fraud against helpless and unrepresented

    homeowners who can’t afford the cost of attorney fees.

    These “ Bankers or Lenders “ and their “ Foreclosure Mills” have foreclosed on

    thousands of homes ..with out the proper documentation , or with fabricated


    It is a known fact that all these mortgage loans have been paid off by the wall street

    credit default swaps , A.I.G., AMBAC insurance policies , Hedge funds ,and the

    American Taxpayer/ Federal Govt. funds, with those trillion dollar “ Bail outs.”

    These Banks have been paid many times over for the mortgage loan that was defaulted on , yet

    they want it all. The money that they already received , and your house. for a massive

    windfall in their favor. These mortgage loans were financed by the investors, who are the

    real lenders. These Banks were middle men that facilitated the loan transactions.

    They have no real interest in these loans . They have made billions in profit with the

    “ Wall Street Securitization scam “ and are stealing again from both the

    homeowners and the investors.

    We are reading in the newspaper’s , in the internet legal websites .and internet

    “Attorney and Legal “ Blogs. of the many courts rulings that are finding that fraud is

    running amuck in the Circuit Court foreclosing proceedings .

    If a Florida Legislator joins the Banks with their intentions of transforming the state of

    Florida into a non- judicial state and votes in favor for this unjust law , we will all know

    that the Legislator was bought and sold to the “ Wall Street Bankers & Lenders”

    Soon this massive fraud and grand theft of the homeowners of America , by these “Wall

    Street Bankers” will be know to the general public.

    The Outcry will be heard from coast to coast , and the lawmakers will be considered

    accomplices, and facilitators’ of this massive fraud.

    Foreclosed Homeowner

  6. Alina,
    I found an excellent sample of a “DEFENDANT’S EMERGENCY MOTION TO VACATE JUDGMENT”
    pretty much I am asking them to void the decision and look at the fraud.

    I have worked on it all last eve…just crossing my t’s and dotting my i’s and going to get it to the courts ASAP .

    Here is a link to it. I am adding to make it from my own case.


    & one from this blog from my County what are the chances…but only thing is you need to have all it states as facts if they question you but it is excellent. I do have a prospectus I found that details how they committ the fraud.


    I think one only has 10 days to file and in some sttes upto 30 BUT MAKE SURE YOU check. Either way it should go out within a few days if it is an “Emergency”.

  7. Alina

    Sorry – stand corrected. Florida is listed as a non-recourse state – guess you have to question everything. My state is listed as “recourse” state – but I know of no deficiency judgments in the state.

    DinSFLA needs some help from a Florida attorney as to procedure. Look at Motion for Reconsideration (you have a very limited time to do this) but could be important step in the process. Then look at appeal process. I think you said Final Judgment was granted – so I do not know if you can do an Opposition to Motion for Summary Judgment. Not a lawyer and states are specific.

    You may want to call your state’s Legal Services for help on procedure if you cannot get your own legal advise. But move as fast as you can because there are time limits on everything.

  8. Question if I lost my Summary Judgement can I appeal by filing:
    Opposition To Motion for Summary Judgment? Or Set Aside with my evidence as exhibits?

    Also do we get the same Judge? After reading this on the Judge I had I do NOT want to see him ever again! Thanks to Alina for this link…


  9. Mayla,

    This law is being disguised as being better because the lenders will not pursue a deficiency judgment. I am not sure that’s the case.

    Florida does allow for deficiency judgments, however, those are rare. At least in the past, they were rare.

    IMHO, this will open the floodgates for mass foreclosures without anything to stop the foreclosures. They will not have to prove they are the lawful parties. I believe the FBA knows they have problems with the closing documents as well as the note and they want to be able to foreclose without proof of anything.

  10. Anonymous,

    In Florida, the foreclosing entity has the option of pursuing a deficiency judgment. They have to file within, I believe, 5 years from the date of the sale of the house. Then they have 20 years to collect on the deficiency judgment. They can also renew for another 20 years.

    Deficiency judgments are or I should say were rare in Florida. However, I read somewhere that lenders are now pursuing deficiency judgments more agressively.

  11. No one answered Mayla. Florida is already a non-recourse state – there can be no deficiency judgment.

    People do not default on purpose – they default because the situation is hopeless.

    How did they get under-water? By believing the mortgage lenders who approved the mortgage on inflated appraisals who then charged loan-sharking rates. No home buyer can “approve” themselves for loan – if that were the case – maybe we could dig out of this mess – and give ourselves great terms on a new mortgage in the process. And, we would make sure “Title” to property is accurate while we are at it.

    Zurenarrh – liked your story. We are up against tremendous power but have to keep plugging away.

  12. Thanks Alina I just joined! Thank you

    Exactly! He did not ask to see any none of the documents…The look on the Judges face as he rolled his eyes and those words I hear coming from a Judge ” What difference does it make”??? as I tried to defend myself of her “information” not evidence…Are you serious!! She did not even object as i mentioned this…Most of the documents in her hand were the ones I sent them for Production and my answer (I saw she had my certifed envelope closed with a paper clip. Oh and a copy of ONLY a mortgage.

    NOW IF IT DOES NOT GET MUCH WORSE here is a story about the Judge in My case…I URGE you if you have to go in front of him to cancel run avoid him!!

    Read this story of Judge DALE ROSS in Broward County Florida…He´s ridden out countless scandals, including allegations by a lawyer that Ross sexually abused her in 1996, a news account that Ross lied about his birthplace, rumors that he abused steroids, and appellate rulings reversing his decisions and calling him pro-prosecution…


  13. DinSFLA,
    I read your story with abject horror. This is the very thing my wife and I are afraid we’ll face if we go to court. Our case has been removed to federal court despite procedural errors in the bank’s pleadings which were acknowledged by the judge in his denial of our motion for remand. In his denial, the judge said that the procedural errors “do not prejudice the plaintiff (i.e., my wife and me).” Um, yes they do, your honor–our lawyer said that fighting this in federal court would cost us $25-$30K just to get to trial whereas fighting it in state court would cost less than half that.

    Your story reminded me of going to court to fight a traffic ticket when I was in my early 20s. The cop had ticketed me for running a stop sign. I decided to fight it because on the ticket, the cop wrote down that the supposed violation had occurred at an intersection THAT DID NOT EXIST. So I thought, “Surely the judge will recognize that if the cop said that this happened at a nonexistent intersection, it’s very likely that the cop could be mistaken about me running a stop sign.”

    Well, I got to court, and I was asked how I plead–I said “Not guilty.” The judge then got perturbed and of course took the cop’s side. He asked me why I would plead not guilty and I said “Because the intersection mentioned on the ticket does not exist–how could I have run a stop sign at a nonexistent intersection?” The judge did not like that at all and began to berate me. When I tried to speak again, he threatened me with more fines, so I shut my mouth. He blathered on for a minute or two and I was thinking to myself, “This can’t be for real” and decided to speak up again. As soon as I opened my mouth, but before I could get anything out, he again threatened me with more fines if I spoke so I again didn’t say anything and had to pay the ticket.

    Not that I’m trying to compare losing a house to having to pay a traffic ticket, just the fact that it seems that judges are in fact NOT impartial and do not like to have power questioned–theirs or that of other powerful people.

  14. DinSFLA,

    Come join other Florida homeowners at http://www.foreclosurehamlet.com. The website was begun by Lisa E. and she’s trying to put together a coalition of Florida homeowners.

  15. Thanks Anonymous!

    Here is what I felt at my hearing. Normally the Defendant assumes they should feel guilty or that we go in there intimidated by the plaintiffs attorney (Kim Stevens in my case in flip flops and capri pants and a t-shirt YUP! from Law Offices of David J. Stern).
    but the reality is the Judge in my case already had the vision I am guilty because I did not pay “a” mortgage so it is my fault. He already had a Judgement created in his head and did not care to hear me out. Very unfair!!
    Now I get home and I look on Records and there is yet another Assignment of Mortgage dated 1/24/2010 that Ms. Erica Johnson-Seck signed but now for Indymac to Onewest??

    Erica Seck did an Assignment from:
    MERS to Indymac 8/2009
    Indymac to OneWest 1/24/2010
    Case began 2/19/2009

    My hearing was 2/1/2010

    Roger Stotts who signed the affidavit for Indymac has in many cases signed for Mers?? I found an affidavit that gives about 10 VP’s from Indymac/Onewest a LPOA. and a ton he signs as VP for Indymac. Keep your eyes out for these all over the US.

    Again keep in mind there is snoops out there so keep your personal info out.

    If any of us pulled this Fraud we would be in jail no questions asked!

    If anyone knows of a Class Action bewtween Deutsche Bank, or the above please post this info up.


  16. DinSFLA

    Do Motion for Reconsideration. Appeal. Independent Action for Fraud – whatever it takes to keep it alive.

    People are not working together – and that is how they are beating us.

    No power in courts individually. What else can be done?

  17. Sad but true, we have no more rights in this country. The judges are owned by the banks. To rule against them is biting the hand that feeds. Who wants to join me in moving to Canada?


  18. No matter what you do you cannot have a fair hearing! WE HAVE NO RIGHTS IN FLORIDA!! NOR in the USA!

    Just got back from my Final Judgment Hearing and I objected to everything and assumed nothing. Plaintiffs (Indymac) attorney from DAVID STERN PA in Plantation, FL had nothing as evidence (she had only about 20 papers. I walked in with about 1000!)

    She said “The ‘note was ordered but has not arrived”…blah blah…I OBJECTed! There is no Evidence of what she is Representing. I have conclusive evidence of Facts that what she is representing is different.

    From the assignment being executed by Erica Johnson-Seck for MERS (when she is in FACT a VP for Indymac/Onewest) to Not getting ANY Documentary Evidence other than the Assignment dated & had been Filed 6 months after the Commencement of the Foreclosure….I printed all the facts and was not allowed to speak PERIOD! I challenged everything and all JUDGE ROSS kept saying as he rolled his eyes…”What difference does it make” over and over….I said “Judge you are giving my house away to a property manager who does not even have any Documents of evidence here TODAY!…again “What difference does it make”.

    My QWR was never respoded to and I sent in the request twice certified mail!

    Final Judgement GRANTED!!

    I went with tons of Evidence of Fraud and not once did the Judge care to hear me just kept rolling his eyes like the excorsist….What an American Nightmare & NO Justice For All!

    This was in Broward County, Florida (Fort Lauderdale). We have absulutely no rights NONE Zip Zero People!

    What to do next?

  19. It seems that everything we know to be true is false. All these laws do not apply, I thought we were a country of laws? Which ones? Can someone please explain??? thanks

  20. Alina- I have also read Custodial Agreements, and those agreements, while allowing electronic records for most documents, require the Note and Mortgage (Deed of Trust) to be retained in paper original form. So deliberate destuction of the paper originals of those documents would be a violation of the terms of those custodial agreements.

    Thinking about it now, if the “original” note is merely an “electronically converted” “original,” why would the “custodian” be entitled to ANY fees to be “custodian” of the records?

  21. Alina:

    You have a really good point. This is a question for Neil – or any other attorney who is familiar with the UETA.

    Quite some time ago, I discussed “true sale” with a major bank executive (I was at a party). The exec told me then – that the “true sale” is becoming a major issue. And that, in effect, a true sale did not occur in many of the transactions. I think it would important to also look at the UETA with “true sale” in mind.

    The electronic signature and “control” are also an issues.

    I as far as I can see, and I am not a lawyer – and, may be off-track, the Act applies only to transactions between parties each of which has agreed to conduct transactions by electronic means. I may be missing something here – but in the conversion of loans to securities, the electronic records of “sale” do not resemble the original transferable record (see a Mortgage Schedule attached to a PSA). So questions are 1) how does this apply to borrower and does borrower have to agree to allow for electronic (including signature) conversion at his/her original signing, in order to allow for electronic conversion of original note into a security? 2) Section 16 discusses “control” of a transferable record, in which a transferable record is created, stored, and assigned in such a manner that a “single authoritative copy is……unalterable.” Thus, were documents altered in the electronic transfer process? If individual loans were changed into a “portfolio” of securities – in a different form – it appears to me that the “transferable” record (original loan) was altered into an “unidentifiable” (and altered) “pool” of securities derived from the original loan contracts 3) Question of control is also important because who had the “control” to convert the original loan (balance sheet receivable) into a “pooled” securities, and therefore effectuate a transferable record into electronic (securities) conversion record? Clearly, only the security underwriter had this ability. 4) The party must have control of the transferable record in order to electronically convert it. Question, was the record converted before or after the trustee is assigned fiduciary capacity? Who had control to convert? Did investors in securities have control? I do not think so.

    According to the party bank executive, individual loans ( I assume in their original non transferred “record”) were often not properly assigned to SPVs/REMICs. Rather, a list of “pooled” securities (a Mortgage Schedule) was placed (assigned) to Trusts – and this list did not include the original loan document assignments. Many SEC docs state that the assignments of loans had to be recorded – at the time of sale to the security underwriter’s (SPV) in the county for recordable documents. Electronic transfer and recording is not referred to. Why are courts allowing assignments that did not comply with the SEC filed documents at the time of issuance? And, many months or years later??

    Many issues need to be addressed by the Supreme Court. But how do you ever get there? Alina, in my opinion, and I am not a lawyer, your point is very important and clearly connects to the validity of conversion of notes and, also, to “true sales.” It appears that courts are allowing financial institutions to now “fix” their mistakes – but if a “true sale” never really occurred – and if electronic conversion of files negated a valid conversion of notes, then how can this be fixed years later?

    Cases settle before they ever get to Supreme Court because the financial institutions probably do not want to risk a precedent opinion by the Supreme Court.

    Side note – The multi-district litigation “In Re Ameriquest”, for predatory lending, which has been ongoing for years, reached a preliminary settlement. Each class action member will likely receive about $30 (minus administrative expenses). About $200,000 will be set aside for foreclosure counseling. Attorneys will receive much, much more. Comments?

    Alina, your questions are really important. Hope Neil will address this. I think I am being sidetracked by your question because of so many intertwined issues. An attorney keeps telling me – judges like “simple” – they do not want to address complicated issues. Think we have to complicate the issues.

    Can Neil, or anyone else, address this for Alina?

  22. Wouldn’t this FL law change HELP those who default on purpose– not because they can’t afford their mortgage payment but because they are so upside down in their mortgage it just makes more financial sense to walk away? Do I understand it correctly? Under the new law, the bank could not receive a DEFICIENCY JUDGEMENT against you after you walk away– even if you have the $$$– as long as you don’t trash the house? Can anyone comment?

  23. Anonymous,

    Your posts are always extremely insightful. I am lightyears behind you on securitization, but your explanations bring me closer to understanding it.

    What is your take on the idea that paper notes were converted to electronic and used as transferable records? Isn’t this counter to Section 16 of the UETA? If so, then isn’t the sale/pledge, or whatever they call of these “converted” notes invalid?

    Personal – I hope the info helped.

  24. To Alina:

    Yes – but also the reason for electronic file conversion was to accommodate the accounting conversion of loans into securities in off-balance sheet conduits. Since securitization converts on balance sheet loan receivables into a portfolio of securities which are concealed in the off-balance sheet conduits – there is no longer a place to account for individual loans. Would love to see a “portfolio” electronic file and exactly what data was compiled from the individual loans. But that accounting gimmick is over. Banks were given six extra months to start bringing these conduits back onto their balance sheets – some are already doing this. The SPVs/QSPEs/REMICs – and whatever else you want to call them – will be gone in its current form. Six months is over in July 2010. Isn’t that when they want to establish the non-judicial foreclosures in Florida?? It is amazing that the FBA, and others, still like to think that the “secondary market” for the conduits is still ongoing and functioning. The party is over – just have to let the courts know this. I remember the Enron scandal – and one attorney stated that they “banked” on the courts lack of knowledge in financial engineering. Guess when the courts start catching up – they have to change the system! All in Florida must fight – cannot let someone else do it – because none of this can be done alone. All states should be “judicial” because the securities were regulated – or supposed to regulated – by a federal agency – the SEC. Non-judicial states are antiquated to before the financial/securities FEDERAL crisis. I think some of these states are actually looking at this better than the judicial states. Why would Florida go backwards?

    Personal – thank you for the “rainy day” walk!!

  25. “Banks say cut out the courts”

    Borrowers say cut out the banks.

  26. Not sure if this would be in violation of the Florida Constitution. I will double check. However, I would like to point out that Florida has historically been a state without much in consumer protections. After all, you are talking about a state that did not ratify the Civil Rights Act of 1965 until 1972 and then only because they were in jeopardy of losing some federal funding.

  27. Here is a thought- while watching endless tv news reports on the “foreclosure crisis” there are always realtors’ signs with “BANK OWNED” on the sign. As we all know the banks didn’t lose money and nobody knows which entity (if any) is entitled to foreclose, but I am pretty sure in 90% of the cases it isn’t a bank- so isn’t this false and misleading advertising under FTC?
    Passing these off as bank-owned further promulgates the fraud- remember, Al Capone was put away on IRS charges, not murder,bootlegging or whatever. A ruling by the FTC that if a bank doesn’t own it or isn’t the holder in due course etc., the listings would have to be changed, making real estate agents, mortgage brokers and appraisers at least uncomfortable explaining “well, we don’t REALLY know who,if anyone, owns the mortgage, and we can’t give you a clear title or title insurance, but, hey, the note, or at least part of the payments, were supposedly, i mean allegedly, if not legally, then more or less “approved” in layman’s terms, anyway,purportedly, that is, the interest payments, or, well, how much did you want to offer?”

  28. I believe 37 states are currently non-judicial; I’m sure their immediate goal is to convert those remaining states such as Florida that have a high percentage of defaults.


  29. I’d also add that this needs to be opposed as vigorously as possible. Politicians in Florida need to be made aware that such a legislative push by the FBA is absolutely radioactive and a career ender in the voting booths around Florida.

    Face it folks, what needs to be happening is that there should be legislative pushes in the non-judicial states to change them to “judicial” for foreclosures; MORE due process (or at least an equal footing) – not LESS. If the FBA succeeds with getting this oxymoronic bill signed into law, think how emboldened the MBA and the rest of the MERS pretenders with be… And they would not stop with Florida.

  30. DNY,
    Good point. The law would not apply to existing mortgages. However, I am sure the banks would push for some sort of workaround to get around this barrier. And of course it will work in the majority of cases – because many do not stand up and fight. Which is probably the whole point in passing this legislation.

    Dan Edstrom

  31. Isn’t this “initiative” also complicated by the fact that in non-judicial states, unlike Florida, borrowers were made to sign a “Deed of Trust” not a “Mortgage.” The “Deed of Trust” creates the position of Trustee (yes, yet ANOTHER “trustee”), with stated (or claimed) powers to sell the property after a declared “default”? A “mortgage” – used in judicial states like Florida – has no such provisions. Wouldn’t this “helpful” (LOL) legislative effort by the FBA run into more than a little snag when it attempts to rewrite the many, many existing Florida mortgages out there that represent the next peak in waves of default, set to wash over Florida in September 2011? Some of those mortgages, prime and very large, will no doubt be so-called “strategic defaults” by folks with resources to fight.

    Any comments on this?

  32. And perhaps they (non-judicial foreclosures) would violate the Florida state constitution as well? Any thoughts?

  33. Alina – can you link to the article or source for the Florida Banks quote?

  34. I believe Neil is correct when he says non-judicial foreclosures are in fact unconstitutional.









    this is direct quote from the Florida Banker’s Association Comments to the Supreme Court of Florida files September 30, 2009:

    “It is a reality of commerce that virtually all paper documents related to a note and mortgage are converted to electronic files almost immediately after the loan is closed. Individual loans, as electronic data, are compiled into portfolios which are transferred to the secondary market, frequently as mortgage-backed securities.
    The reason “many firms file lost note counts as a standard alternative pleading in the complaint” is because the physical document was deliberately eliminated to avoid confusion immediately upon its conversion to an electronic file. See State Street Bank and Trust Company v. Lord, 851 So. 2d 790 (Fla. 4th DCA 2003). Electronic storage is almost universally acknowledged as safer, more efficient and less expensive than maintaining the originals in hard copy, which bears the concomitant costs of physical indexing, archiving and maintaining security. It is a standard in the industry and becoming the benchmark of modern efficiency across the spectrum of commerce—including the court system.”

    As is evident, they are aware that the notes were destroyed. This is their weak attempt at CYA.

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