Karma in the Foreclosure Business

There’s not much of a silver lining in a foreclosure, but some foreclosed homeowners can take a little stab of enjoyment from this story on TBO.com. The DAL Group, LLC of Plantation, FL, has defaulted on it’s $15 million loan from Bank of America.

So what’s so good about that. Well, DAL Group is owned by Attorney David J. Stern, and is one of the many foreclosure mills operating here in Florida. Fannie Mae and Freddie Mac recently cut ties with company and retrieved their files. This was approximately 90% of the firm’s business, and in the past few days, Wells Fargo has announced they are severing their relationship with the company. To add insult to injury, Florida Attorney General Bill McCollum is investigating Stern’s firm and three other large firms for submitting false or misleading statements in foreclosure proceedings.

Of course, I’m sure we don’t have to feel too sorry for Mr. Stern, esq. I’d make a pretty sizable bet that he’s already a nice chunk of the company, and given that it is a limited liability corporation, he’ll walk away richer than the day before he started the business, leaving Bank of America holding the bag, but hey, just like they blame the homeowners for taking out loans they couldn’t repay, I’m sure that Bank of America is just fine with funding a foreclosure mill.