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Thursday, May 23, 2024 | Back issues
Courthouse News Service Courthouse News Service

Class Blows Whistle|on Foreclosure Firm

ST. LOUIS (CN) - The Millsap & Singer law firm, "one of Missouri's largest foreclosure firms," violates its role as a neutral trustee in foreclosures by serving as attorney-in-fact for lenders, a class action claims in City Court.

Lead plaintiff Nurdin Beganovic says that in Missouri no court proceeding is needed for a foreclosure, and the trustee is the only neutral party involved.

The trustee must work for the benefit of both parties, but Beganovic said Millsap does not.

Millsap, which operates out of Chesterfield, Mo., "is one of Missouri's largest foreclosure firms," the complaint states.

Beganovic claims Millsap attorneys, who handle thousands of foreclosures, have or should have knowledge of the increasing evidence of widespread fraud and negligence by lenders.

But instead of investigating lenders, Beganovic says, Millsap looks the other way due to the profits it receives from foreclosures and because the firm will get more money from unlawful detainer lawsuits on the same homes it foreclosed on.

"Millsap & Singer has an ongoing relationship with many of the parties who bid on the properties at the foreclosure sale including, in many cases, an ongoing attorney-client relationship," the complaint states.

"Millsap & Singer has appeared as an advocate against debtors who contest the validity of foreclosures while simultaneously and purportedly serving as the trustee regarding those exact same properties.

"In addition, upon information and belief, Millsap has actual knowledge of complete files of debtors, the irregularities that exist in said files, the widespread problems with fraud and negligence by mortgage industry actors, evidence suggesting the non-validity of purported note transfers, the non-existence of notes, and the lack of right to initiate foreclosures it has handled."

The class consists of all people who have been foreclosed upon in Missouri in which Millsap served as the trustee while it was also the attorney in fact for the party who initiated the foreclosure.

The class wants Millsap enjoined from continuing to do this, and actual and punitive damages for breach of fiduciary duty and violations of the Missouri Merchandising Practices Act.

The class is represented by Erich Vieth with The Simon Law Firm.

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