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IPFS News Link • Housing
The bank appears to have tried to settle with the consumer to moot the case. That settlement may have mooted the underlying legal controversy but whether a fraud was committed upon the court is and should be an entirely separate matter.
The Florida Supremes are divided on the matter and this will certainly
be interesting. If they rule that the court decides when jurisdiction
ends on such a matter (as IMHO they should) then the potential liability
of the banks involved goes way up -- and their attempted means of bludgeoning consumers goes right in
the toilet, as the utility of that approach toward foreclosure
litigation goes from being low-risk to "bet 100 large every time you do
it", which could result in penalties of well north of a trillion across
the banking system and law firms involved with them.
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