Except for Pinellas, few courts reporting problem foreclosure documents

The Sixth Judicial Circuit Court in Pinellas County found and stopped the most problematic foreclosure cases in July and August, far outpacing Florida's other courts.

The Pinellas court found 227 cases with dodgy documentation. Eleven circuits reported none, and the next highest number was 12, according to data provided to the state courts administrator.

This shows that Florida's program to rid the courts' backlog of tens of thousands of foreclosures is troubled, foreclosure defense attorneys and court watchers say.

Meanwhile, the Florida Supreme Court said Tuesday that it doesn't have the authority to halt foreclosure proceedings, even over worries about unverified or misleading documentation in cases. U.S. Rep. Alan Grayson asked the state's highest court to freeze the process after state regulators launched investigations into three foreclosure law firms accused of submitting fraudulent documents to the courts.

Florida's foreclosure backlog is so overwhelming that the state Legislature appropriated $9.6 million to hire retired judges to hear cases. The goal is to reduce the backlog by 62 percent by next summer.

But the new system has resulted in so-called "rocket dockets," lists of hundreds of foreclosures disposed of daily in Tampa Bay area circuit courts. Lawyers who represent homeowners say judges are so pressured to reduce case that they don't fully read files -- many of which may be incomplete - nor examine cases for potential problems.

Instead, Florida's new foreclosure court program, which began in July, relies heavily on case managers to comb through foreclosure filings and spot potential problems.

So, why did the circuit in Pinellas find so many more problem cases than other circuits?

The data provided to the state shows 227 cases in the circuit were found to have "insufficient pleadings or documentation." That means those cases cannot go forward unless the documentation problems are solved.

"We trained our people of what to check, and we always pride ourselves on doing their jobs correctly," said Ron Stewart, spokesman for the circuit, which includes Pinellas and Pasco counties.

Stewart said this data shows the circuit is doing its job. He said case managers have a check list to make sure each file is ready before a judge decides whether or not to grant a foreclosure.

Mike Bridenback, court administrator for the 13th Judicial Circuit in Hillsborough County, said the data doesn't represent the whole story.

"We are finding cases with insufficient pleadings, but we have a glitch in our system, and those haven't been reported," he said. "We're working to get that data in."

The data entry has been more difficult than the courts originally anticipated, he said.

Also, he said, problems can sometimes be taken care of early in the process.

"We give the plaintiff some time to correct the record," Bridenback said. "If that happens, it's never recorded as insufficient pleadings."

Florida's Attorney General has accused three large "foreclosure mills" of rushing cases through the system and potentially fabricating documents and signatures.

The firms under investigation are David J. Stern, Marshall C. Watson, and Shapiro & Fishman, whose work together represent about 80 percent of the foreclosure proceedings in the state. Florida Default Law Group of Tampa, a fourth firm is also under state scrutiny.

Rep. Grayson wants foreclosures involving the firms under investigation halted until the attorney general's office releases its findings.

"While the Chief Justice has the authority to issue orders suspending or tolling time deadlines in cases under circumstances that involve natural disasters, he has no authority under the Florida Constitution or court rules to intercede in pending cases on the basis of allegations of attorney misconduct, and he has no authority to investigate allegations of fraud or misconduct in foreclosure cases," according to a letter the court sent to Grayson.

Grayson, along with two other congressmen last week asked Fannie Mae to stop using the three firms under investigation.

Matt Weidner, a foreclosure defense attorney in St. Petersburg, said it's the courts' responsibility to review cases for problems. Some, he said, shouldn't be allowed to move forward.

"The court is just hiding," Weidner said. "There are so many of these files that should be dismissed."