In the past several weeks most of the big lenders have halted foreclosures to reexamine mortgage documents to ensure they are in line with the 23 states that require court approval before a foreclosure can commence. There has been controversy in recent cases where small firms are acting as “foreclosure mills,” signing thousands of documents to issue foreclosures each month. This has pushed lenders away from small firms seen in this light toward large firms when homeowners fight foreclosure and challenge document legitimacy.

This kind of move is exemplified in a case currently underway. Parnell Peace has brought a case against a Bank of America subsidiary that has commenced foreclose procceedings on his house in Florida. But, Parnell and his attorneys at Ice Legal challenge the supporting documents provided by the mortgage company. The documents have inconsistent dates and timeline for mortgage transfers between various lenders. The Bank of America subsidiary has since hired a team from Gray Robinson to work on the case. The team has moved quickly to suppress documents and a key affidavit.

Several other banks have also made the move towards large firms and legal teams as challenges are on the rise. In Texas, JPMorgan and its local counsel, Quilling, Selander, Cumminskey & Lawnds, have moved in several current cases for them to be tried in federal court.  It remains to be seen how these tactics will play out, but as homeowners increasingly challenge the legitimacy of foreclosure and mortgage documents, banks are clearly favoring large legal teams.
 

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