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New: Foreclosures in Florida 'Abandoned' when Firm Closes

5:49 PM, May 6, 2011   |    comments
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JACKSONVILLE, Fla. -- Attorney David J. Stern sent out a letter across the state in March warning the courts he needed to withdraw as counsel from about 100,000 cases statewide.

The South Florida attorney - once known in the media as the "foreclosure king" - shut down his law firm in March.

"David J. Stern's law office this time last year was the number one filer of foreclosures in the state of Florida," said Jacksonville attorney Chip Parker.

Not anymore.  Stern is now out of the foreclosure business.

It's unclear right now how many of his cases are in Duval County, but according to one local law firm it's dealing with several dozen. And all of them are in limbo.

"The demise of David J. Stern has really caused quite a problem not just in Northeast Florida but throughout the entire state," said Parker.

Parker said it's un-charted territory - 100,000 cases just sitting there waiting for a new attorney to be assigned.

"The shocking part of it is he no longer had physical possession of his files. Those files were taken by services, Fannie Mae, Freddie Mac.  As a result, the Judges have been faced with this dilemma of what to do with David Stern files," said Parker.

Don't expect an easy solution, said Parker.

The situation, he thinks, will cause quite a backlog and slow down the foreclosure process. 

"I think we are looking at sort of the perfect storm in that we have all these pending cases that are orphaned by David Stern, and at the same time we are now starting to see that second spike in foreclosures that we've all been anticipating."         

 

 

 

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