Eric T. Scheniderman, the New York Attorney General, has issued subpoenas to the state's largest foreclosure law firm, and a related company, according to an article today by Gretchen Morgenstein in The New York Times, indicating that this office has somed doubts about efforts by state attorney's general to resolve questonable forelosure practice among the nation's top banks.
The New York investigation appears to center on two of the state's foreclosure industry giants: the Steven J. Baum firm headquarters in Amherst, New York, and Pillar Processing, a default servicing firm set up by Mr. Baum that was spun off in 2007. Representing J.P Morgan Chase, Wells Fargo and other large banks, the Baum firm has handled an estimated 40 percent of foreclosure cases it the state. Pillar processing provides extensive service to the firm. A spokesman for Mr. Schneiderman declined to comment. The firm will cooperate the attorney general in this general in this mater. We are confident that after a full review by the attorney general they will find no wrong doing"
"Scrutiny of the Baum firm has increased in recent months after significant errors surfaced nationwide in legal paperwork used by banks to seize delinquent borrower's homes. For example, documents detailing how much borrowers owe have been used by bank representatives to seize delinquent borrower's homes. For example, documents detailing how much borrowers owe have been signed by bank representatives who say they have not verified the information."
The Baum firm has drawn rebukes on its legal practices from judges in several New York jurisdictions. Judges in courts across the state have rejected scores of cases filed by the Baum firm saying it ha failed to provided the documentation necessary to commence foreclosure.
The New York investigation appears to center on two of the state's foreclosure industry giants: the Steven J. Baum firm headquarters in Amherst, New York, and Pillar Processing, a default servicing firm set up by Mr. Baum that was spun off in 2007. Representing J.P Morgan Chase, Wells Fargo and other large banks, the Baum firm has handled an estimated 40 percent of foreclosure cases it the state. Pillar processing provides extensive service to the firm. A spokesman for Mr. Schneiderman declined to comment. The firm will cooperate the attorney general in this general in this mater. We are confident that after a full review by the attorney general they will find no wrong doing"
"Scrutiny of the Baum firm has increased in recent months after significant errors surfaced nationwide in legal paperwork used by banks to seize delinquent borrower's homes. For example, documents detailing how much borrowers owe have been used by bank representatives to seize delinquent borrower's homes. For example, documents detailing how much borrowers owe have been signed by bank representatives who say they have not verified the information."
The Baum firm has drawn rebukes on its legal practices from judges in several New York jurisdictions. Judges in courts across the state have rejected scores of cases filed by the Baum firm saying it ha failed to provided the documentation necessary to commence foreclosure.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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