Bank lawyers prosecuting the 80,000 foreclosure cases in New York State are all but admitting that the cases they have filed over the past number of years have been riddled with fraud, according to an article by Josh Kosman in today's edition of The New York Post.

The article said that "practically no new foreclosure cases have been filed" in recent weeks since "New York State Chief Judge Jonathan Lippman put the foreclosure lawyers on notice that any fraud in foreclosure paperwork would be met with severe penalties." He is "making lawyers sign affirmations promising they took 'reasonable' steps to make sure the legal papers are true," the article said.

"The virtual shutdown of New York's foreclosure business comes despite chest-thumping, bravado-filled statements made by some banks in October that they had nothing to be afraid of when it came to foreclosure fraud and the lawsuits aimed at kicking delinquent homeowners from their houses would continue shortly. It seems," the article noted, "lawyers pressing the foreclosure cases are not willing to bet their law licenses on such claims."

"While many banks are not prosecuting foreclosures," the article continued, "they are still preparing those cases by sending paperwork to law firms on new homeowners who are behind on payments. The cases are not being filed in court. 'The spigot has not been shut off much, to my surprise,' a foreclosure industry insider told The Post, of the bank's sending of the foreclosure paperwork to their lawyers."

The number of homes in foreclosure in New York State has risen to 80,000 from about 20,000 four years ago, the article said.