Last week, the Florida Supreme Court heard arguments in a foreclosure lawsuit that could leave a major impact on how banks do business. The landmark case has the potential to unravel thousands of prior foreclosure cases and lead to in depth investigations into bank practices.
Several Florida banks could face severe financial penalties if the state finds foreclosure fraud in their investigations under this current lawsuit. As one of the largest foreclosure fraud investigations in Florida history, this case could help repair the severe damage that has resulted in Florida over foreclosures.
Over the past five years, flags have been raised as to banks filing fraudulent foreclosure documents then voluntarily dismissing the cases only to refuel them later with different paperwork. As part of the investigation into the robo-signing scandal that has plagued the nation since 2010, Florida banks may be found to be one of the biggest violators of the legal foreclosure process. The Florida Supreme Court is currently looking into thousands of foreclosures for evidence of wrongdoing and a decision is expected to take as long as eight months.