Bombshell – Thousands of Pennsylvania foreclosures could be void

Written by Biloxi

We had first introduced to the name "robo-signers" Robo-signers were staffers hired from either a bank and/or law firm that  rubber-stamped mortgage documents without checking their accuracy. These so called 'robo-signers' have also been dubbed 'Burger King kids'  which were walk-in hires who barely knew what a mortgage was. Thousands of homeowners have been evicted in this way in the non-judicial and judicial states.


Now, there is new type of method to evict homeowners: Non attorneys ever reading foreclosure filings. Two cases in Pennsylvania, one state and one federal, found to be victims of this new method by Goldbeck McCafferty & McKeever (GMM) could leave thousands of troubled Pennsylvania homeowner's home to be null and void and may leave other states wondering if other homeowners fell victim to this new method.

In the case of Kimberly Robinson vs. Countrywide Home Loans, Ms. Robinson's attorney, Patrick Loughren, filed a lawsuit against GMM  on how the firm allowed and/or still allows  nonlawyers in GMM to file thousands of foreclosures.  
 Mr. Loughren sued  three partners of GMM, Joseph Goldbeck, Gary McCafferty and Michael McKeever. Why did Mr. Loughren sue the three GMM partners? It is because all three partners admitted under oath that "during depositions last September and in a separate case in December 2009 that no attorney ever read the filings. The partners made clear that the practice has gone on for the past several years."

And here is another bombshell. Bank of America knew of GMM's practices. According to Daily Finances:

Loughren notes that in both cases involving the partners' testimony about the practice, Bank of America (BAC) was the foreclosing bank. It was actually present during the December 2009 trial when the admissions were first made. Loughren points out that BofA's representative at that trial, John Smith, is himself a lawyer, and so presumably understood the legal significance of GMM's admission.



Other BofA employees surely learned about the practice too, given that the December case was an effort by the U.S. Bankruptcy Trustee to sanction both the bank and GMM for misconduct, and evidence submitted for it showed the involvement of "high-ranking" BofA people not normally involved in a foreclosure, such as its assistant general counsel.



If Mr. Loughren's case wins., that could mean that all GMM foreclosure filings could be dismissed and could be case law for other states to use in their states' foreclosures: Lawsuits filed by nonlawyers are null and void. This not only affect thousands of cases across Pennsylvania but may spread to other states if challenged.  Nevertheless, this is another pill in the foreclosure mess.