As a follow up to Act 48, the Legislature has passed House Bill 1875, and the Governor said he will sign it. HB 1875 adds a provision about HOA fees and more importantly, about the foreclosing attorney’s responsibility. The mortgage companies and the foreclosure attorneys are promising hellfire and damnation, dogs and cats living together, mass hysteria!

I don’t see a problem. All attorneys are governed by Rule 11 which require the signing attorney to attest that the document is factual, warranted by existing law or nonfrivolous argument to change the law, and not filed for an improper purpose. HB 1875 requires the attorney filing to communicate with the mortgage lender and verify to the best of their ability that the basis of the foreclosure is legitimate. Not a real high hurdle IMHO.

The foreclosing attorneys are basically crying because that they can no longer blindly file foreclosures on the lenders’ word only. This will cause problems for their current low cost, mass filed foreclosures.