Firm known for mocking homeless settles foreclosure fraud case

New York, NY- The Stephen J. Baum law firm, who became known for mocking the homeless at Halloween costume party, has settled a $4 million settlement with the state over foreclosure processing abuses.

The Stephen J. Baum law firm was accused of using “robo-signing” and other fraudulent practices to process tens of thousands of foreclosures for banks in the New York area, which include Citibank, Wells Fargo, JP Morgan Chase and Bank of America.

An investigation by State Attorney General Eric Schneiderman discovered that the firm processed foreclosure documents in an “assembly-line fashion” in order to move the documents quickly and maximize their profits.

Many people across the country have been subjected to misconduct by mortgage processors, some of who have been able to fight a home seizure with the assistance of a foreclosure attorney.

The Baum firm utilized a document service, Pillar Processing to help them speed up foreclosure paperwork, which was started by Baum and also named in the lawsuit.

Schneiderman said that $2 million of the settlement will be used to help homeowners at risk of losing their homes.

People, who are served eviction papers, often feel frozen and don’t know what to do. It is important that they take action and hire a foreclosure lawyer to outline their options. With the help of a foreclosure attorney, the troubled homeowner may be able to get a mortgage modification or appear in court to prevent the bank from seizing their homes.