The foreclosure industry was once a sleepy backwoods--until the foreclosure fiasco started up. The business came fast and furious and not without controversy, which is taking a toll on some firms.

The American Lawyer profiles Steven J. Baum, a "once-obscure Buffalo-area firm has become a fixture in courthouses throughout the state. Last year, it sought judicial action in 17,620 foreclosure cases, nearly 40 percent of the 46,572 reported by the court system. While Baum's business has soared, his firm has been reviled as a 'foreclosure mill' that tramples on the rights of homeowners."

It has been sued for filing fraudulent documents and many have charged it with sloppy paperwork. Several judges have taken issue with the firm, with one likening its arguments to the Twilight Zone. Another fined it for "misrepresentation" and "carelessness."

This is reminiscent of the David J. Stern firm of Florida, who has similarly been vilified. Stern ended up being dropped by many top banks.

Baum has argued in the past that his firm follows all rules and regulations and that most judges have no issues with its work. As of now, such firms are convenient scapegoats, but they would be wise to redouble their efforts. The landscape is changing for foreclosure clients, and the bar will be much higher.

For more:
- here's the article

Related Articles:
Judges tell foreclosure lawyers to vouch for documents
Settlement with 50 state attorneys general coming soon
Lawyers put liens on homes to get paid
Foreclosure 'victims' in California can't hire attorneys