New York Foreclosure Law Firm to Close After Losing Fannie Mae and Freddie Mac

The current foreclosure crisis has hit the American people very hard and they are constantly appealing to federal officials for help. They may not get all the help they need, but sometimes federal officials hear the outcries of the public and react.

Such is the case for the Stephen J. Baum law firm, who were heavily criticized for mocking the people who lost their homes to foreclosure, at a Halloween party in 2010. People, who could not avoid eviction with the assistance of a foreclosure attorney, face homelessness and the employees of the Baum firm made fun of their plight.

Last week, Fannie Mae and Freddie Mac announced that they would no longer allow the Stephen J. Baum firm to process any foreclosure actions originating from their offices. Fannie Mae and Freddie Mac are the country’s largest mortgage servicers, and their choice to no longer use the Stephen J. Baum firm has had an effect on the firm’s solvency.

Today, the Baum firm announced they would have to close after losing Fannie and Freddie accounts. They have begun to lay off employees and will eventually close. This is not entirely good news as over 60 people will lose their jobs, but it does show that callous actions have consequences.

Any foreclosure lawyer can attest to the misery that people endure when faced with losing their homes. Burgeoning foreclosures have adversely affected those who lose their homes and the adjacent homeowners. A foreclosure attorney can help some people with this plight but not all homes can be saved.