Nevada Sues Major Foreclosure Processing Firm

The state if Nevada has been hit hard by the foreclosure crisis and has consistently made it in the top three states with the highest foreclosure rates. The state of Nevada is now suing a foreclosure firm, Lender Processing Services, for mishandling of foreclosure documents.

Thousands of people across the country have been victimized by a dysfunctional foreclosure processing system. Robo-signing and fraud have been rampant in the industry, many people have unjustly lost their homes, but others have fought back with the aid of foreclosure attorneys.

The lawsuit alleges that Florida-based LPS and several subsidiaries filed fraudulent documents with false signature. The company required employees to sign or notarize up to 4,000 documents a day. LPS is used by major banks and processes up to 50 percent of foreclosures in Nevada.

That company is also accused of imposing arbitrary deadlines on their foreclosure lawyers, which led to errors in the process. LPS is also accused of misrepresenting the scope of their errors by claiming they were clerical errors. 

The suit also alleges LPS discouraged communication between those attorneys and their clients and demanded referral fees form the attorneys.

Banks and foreclosure processing firms have been accused mishandling paperwork and states are now taking action against these companies. California, as well as Nevada, has begun filing lawsuits against these companies to hold them accountable for their misconduct. A portion of homeowners have been able to avoid wrongful foreclosure by employing knowledgeable foreclosure attorneys.