Mandelman on LPS, DJSP Ent. & Altisource – Nina Easton’s HOT Stocks for Homeowners Losing Homes

Via: Mandelman Matters

(Only in America… Nina Easton.  More on that in a moment.)

The New York Post is reporting that a new gold rush is sweeping the country and it’s all about… are you ready for this… “people looking to get fat off of the $4 billion home foreclosure industry”.

Apparently, in the last two years four companies have either gone public or are about to go public, and each is looking to raise the cash they need to become a “national powerhouse” in the business of providing “streamlined and low-cost methods” for kicking people out of their homes.

According to the Post, “there are currently 6 million homeowners 60 days or more delinquent on their mortgage,” which makes these companies very attractive to investors.

These companies, DJSP Enterprises, whose revenues have increased by 31% over the last year, Altisource Portfolio Solutions, with its 182 percent increase in profits last year, and of course, Lender Processing Services, a company with $2.4 billion in revenue up 29 percent last year — all offer technology linking lenders with law firms in order to reduce the cost and streamline the process of foreclosing on homes and evicting their ex-owners.

Oh, and let’s not forget Prommis Solutions, which turned a $7.9 million profit in 2009 and has filed to go public.

Now, Lender Processing Services is the parent company of DocX, a company that one of the companies under investigation by the Florida Attorney General’s office for being in the business of creating fraudulent documents used in foreclosure proceedings when the servicer doesn’t have any paperwork showing that the trust actually holds the mortgage.

But, LPS doesn’t seem terribly concerned about that investigation, or any of the others that threaten to expose this company for wrongdoing.  They say it’s all just a mix-up… funny story, that sort of thing.  Here’s the company’s CEO on May 20th:

LPS’ CEO Jeffrey Carbiener said “our earnings are quality earnings. They translate into cash flow.  LPS generated $349 million in cash last year.”

LPS provides all levels of mortgage default services services for when a loan goes bad.  “Because we have a strong business model, we’re able to weather economic challenges,” Carbiener said.  LPS’s growth is continuing into 2010, with first-quarter revenue up 11.8 percent and adjusted earnings up 26.5 percent.

“We’ve had good success and we expect that success to continue into the future,” Carbiener said.

These types of companies get fees from the lenders on each property, and from the law firms that file the foreclosure actions. So, their prospectuses warn investors:

“A turnaround in the housing market or additional mortgage-modification plans from Washington may negatively impact our profits.”

Well, there’s not much to worry about in either of those regards, at this point anyway.  But, I suppose there is always the risk that there could be an outbreak of competence in Washington.  Still… I’d probably go long at this point.

As long as our economy continues to sink into an abyss, any of these companies is poised to become the next Microsoft, but God forbid our elected representatives actually figure something out and we start to see stabilization in the housing market, leading to a real recovery, well… better sell these stocks short and fast, ‘cause the better things get the worse they’ll do.

The whole thing got me to thinking… this must be awfully confusing to John Paulsen and the guys at Goldman.  They want to short the housing market in every possible way, but to do that in this case, they have to go long.  I’ll bet some traders have become dizzy and maybe even passed out just thinking about that.

A Goldman Trader: “What do I do again?  I need 3.5 million shares short… no, long… no, short… no, damnit!”

So, if you’re a homeowner at risk of losing your home to foreclosure, or even if you’re not looking at foreclosure, but just can’t stand the thought of watching another hundred grand in equity go up in smoke, I have some important investment advice for 2010 and 2011 that you’ll want to hear.

Why not consider strategically defaulting on your underwater mortgage in order to start dollar cost averaging into this brand new and exciting offering:

Nina Easton’s

Empty Homes Hi-Yield Bond Fund

To learn more about Nina’s role in the foreclosure crisis, click where her name appears in orange above.

The fund’s objective is to acquire significant positions in bonds issued by growth companies that are positioned to capitalize on the emerging and exciting multi-billion dollar foreclosure industry.  The fund’s investment strategy focuses on:

  • Technologies that enable faster, high-quality document forgeries.
  • Property preservation companies that throw people out first time, every time.
  • Title insurance companies that don’t care who owns the property.
  • Lock-Box and REO-FOR-SALE sign manufacturers.
  • Home auction companies.
  • Firms that lobby on behalf of the banking industry.
  • And, of course, the makers of Xanax and Ativan.

People, this is a once in a lifetime investment opportunity to place a bet on our growing foreclosure industry, supported by the total and ongoing incompetence of our government!  And that’s not all…

In order to hedge your position in Nina’s Empty Homes Hi-Yield Bond Fund, or for those of you who think the administration and other branches government may at some point actually start getting something right, I’m also working on getting the Obama Administration to agree to be a counterparty in credit default swaps related to certificate holders in Nina Easton’s Empty Homes Hi-Yield Bond Fund.

Nothing is definite at this point, but I think it’s important that dumb money be able to short our multi-billion dollar foreclosure industry, so for those that think the foreclosure crisis will be ending soon, stand by because my soon to be available Obama Competence Credit Default Swaps should be available soon.  That’s right, you can sell the foreclosure industry short when you invest in Obama Competence Credit Default Swaps.

Plenty of Upside Remaining…

Some have said…

“But Nina… we’ve already lost 7 million homes to foreclosure.  Haven’t I already missed out on my chance to profit from this exciting opportunity?”

No, no… silly human… there’s plenty of upside remaining in the foreclosure market.  Housing prices are still in a free fall, foreclosures are still coming in at over 300,000 a month, and we’re on the fifteenth straight month at those levels.

There are 6 million people more than 60 days delinquent on their mortgages right now, and Goldman Sachs forecasts 14 million more foreclosures in the next five years!  And don’t forget… the good news is that the ALT-A and Option ARM loans that haven’t even started adjusting yet!

Unemployment?  Fuggetaboutit!  I mean, no one is even trying to fix that anymore!  We’ve got more people unemployed for more than 30 weeks than since before I was born, and at this point our only strategy is to report made up numbers generated by the Bureau of Labor Statistics.  I think it’s pretty safe to say that it’s all downhill from here!

So, worry not.  It’s not at all too late for you to get involved and make your fortune in the fast-paced and exciting foreclosure industry, because there’s plenty of upside left in the American foreclosure market.  Let’s see the Chinese beat us at this!  No chance… they won’t even try.

And the people trying to stop this foreclosure thing… please.  Here’s what Nina Easton wrote in her blog about a demonstration near her home:

Now this event would accurately be called a “protest”; if it were taking place at, say, a bank or the U.S. Capitol. But when hundreds of loud and angry strangers are descending on your family, your children, and your home, a more apt description of this assemblage would be ‘mob.’

You tell ‘em Nina!

Others ask…

“Nina, I heard HAMP was doing better at modifying loans lately.  Is this something I should be concerned about?”

I wouldn’t be the least bit concerned, and here’s why…

First of all, you’d have to believe that the government’s program will actually continue to show improvement, and at this point, there’s very little evidence upon which to base that sort of assumption.

As of right now, there have been about the same number of homeowners kicked out of HAMP as have received permanent modifications, and don’t forget there are still more than 600,000 homeowners stuck in the purgatory that the government refers to as a “trial modification,” so look for at least a few hundred thousand more foreclosures there, for sure!

It really is an exciting time to be investing in the foreclosure industry in this country, and there’s no better way than through Nina Easton’s Empty Homes Hi-Yield Bond Fund.

Now, it is true that HAMP, as of June 1st, will start requiring homeowners to verify their incomes prior to being placed into a trial modification, and the early indications are that a much higher percentage of homeowners will ultimately be granted permanent modifications in future months as a result of this new requirement.

Big deal… The numbers of homeowners entering the program declined dramatically as soon as the servicers started asking for proof of income in advance of being granted a trial modification, so even if this does make HAMP incrementally better, it won’t come close to touching the more than 300,000 new foreclosures occurring each month in this country!  How could you ask for better fundamentals than that?

And the best part is… you can still rely on the fact that HAMP is “VOLUNTARY” as far as the banks and servicers are concerned!

So, relax… you don’t think the banks and servicers are going to do anything to stop foreclosures, do you?  Of course not!  And it’s still… ALL UP TO THEM!

If there’s one thing you can depend on, it’s that the banks and servicers will continue to fuel the foreclosure industry’s growth, so with the government allowing the banks total discretion on all foreclosure decisions, investing in Nina Easton’s Empty Homes Hi-Yield Bond Fund is a safe bet and a sure winner.  It’s like we’ve got Colonel Sanders guarding the chickens, if you know what I mean.

Barring some totally unforeseen change in the administration, like Paul Volker being taken seriously, Bernanke allowing us to audit the Fed, Tim Geithner turning on his banking buddies on Wall Street, or Liz Warren being given teeth, there’s no way Obama’s Making Home Affordable program is going to address the millions more homes that will be lost as a result of the foreclosure crisis.

And come on… I understand that past performance is no assurance of future results, but Volker taken seriously?  Geithner turning on Wall Street?  Liz Warren being given teeth?  Bernanke letting anyone inside the Fed?  HAHAHAHAHA… I know… anything can happen, but come on… it’s like thinking that maybe the banksters are going to wake up one morning afraid of Obama.  Come on… you’re killing me… not in this lifetime, baby!

No, folks… the good news for our emerging foreclosure industry, and for Nina Easton’s new Empty Homes Hi-Yield Bond Fund, is that our government has failed at every single turn in trying to stem the tide of foreclosures in this country, and there’s no reason to believe they’re going to be any more competent in the future!

Some say that America has lost its leadership position in the world, but I don’t believe that for a second, and I think we’re already proving it with our clear dominance in the foreclosure industry.  There’s no other country on the globe that has anywhere near as vibrant a foreclosure industry as we do here in the good old U.S.A.

We’re the dominant world leader in foreclosure production, and with nothing in place to stimulate economic growth, nothing even on the drawing board to reverse the trends in unemployment, and all of our money and then some going to prop up failed financial institutions that remain insolvent, how can anyone not think that we will maintain our leadership position as the foreclosure capital of the free world?

And don’t worry about all these pesky demonstrations by homeowners.  Like Nina wrote in her blog last week about the unwashed masses that were demonstrating in front of her house, just because her neighbor works for some bank:

Waving signs denouncing bank ‘greed,’ hordes of invaders poured out of 14 school buses,” childishly putting “greed” in quotes as if referring to unicorns, hobbits, or some other imaginary entity.

Ooooh, snap!  We love you Nina!

So, don’t miss out on the opportunity to go long on the promise of our government’s ongoing incompetence by investing in Nina Easton’s Empty Homes Hi-Yield Bond Fund today!

Disclaimer: Past incompetence is no assurance of continued ineptitude, or future ineffectiveness.

Don’t worry about not having any money left in your IRA or 401(k), many of our investors simply stop making mortgage payments and then invest those amounts in the fund each month.  We even offer direct deposit, so you can just call your bank where your mortgage payments are automatically going now, and have them redirected toNina Easton’s Empty Homes Hi-Yield Bond Fund!

It’s that simple!  Why not start rooting for more foreclosures today?

Isn’t it time to get on the right side of this foreclosure crisis thing, by investing on the winning side!  Sure you may lose a house or two, but so what?  You’re so far underwater that the only difference between you and a renter is that a renter has more rights and can’t be evicted as quickly.

Besides with the money you’ll make investing in my new Empty Homes Hi-Yield Bond Fund, soon you’ll not only be able to buy the home across the street for half the price, you’ll be able to pay  cash!

For more information, call:

1-800-4-EMPTY-HOMES

Or send email to:

invest@throwthemouttoday.com

Operators are standing by to take your call.


~~~~~~~~~~~~

IMPORTANT DISCLAIMERS:

The Empty Homes Hi-Yield Bond Fund is not registered with FINRA or the SIPC, but so what, neither are trillions in derivatives.

Although current personnel working for the administration can be counted on as entirely lacking in ability or skill, theEmpty Homes Hi-Yield Bond Fund makes no assurances pertaining to the stupidity or utter uselessness of those who may work for the administration in the future.

In the event of an outbreak of competence in Washington D.C. investors should recognize that they could lose their investment in the Empty Homes Hi-Yield Bond Fund, although at this point, the FUND’s management believes that statistically this risk falls somewhere between the risk of shark attack in Indiana, and being killed by falling airplane parts while shopping at an indoor mall.

Nina Easton’s

Empty Homes Hi-Yield Bond Fund

Your Ticket to Winning Our Nation’s Race to the Bottom

Fictional Securities Not Offered by Mandelman Matters.  This, of course, was a joke.  Except for the stuff at the top about the companies like Lender Processing Services… that stuff is real, and should make you want to throw up.  Oh, and the stuff about Nina Easton was real too, and I can’t decide whether to ignore her, or write something about her every single day for the rest of my life.

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Shares of DJSP Enterprises Get SLAMMED….FALL 25%. Are we seeing a DownTrend?

Huge profits result from foreclosure procedure

By RICHARD WILNER NYPost
Last Updated: 1:03 AM, May 30, 2010
Posted: 1:03 AM, May 30, 2010

A new gold rush is sweeping the country — only this time the speculators are looking to get fat off the $4 billion home foreclosure industry by promising banks a streamlined and low-cost method to kick folks out of their homes. DinSFLA: Last time I heard the word “speculators” was in the CONDO BOOM!

In the last two years, as the mortgage meltdown intensified, four companies have gone public or filed papers to go public — each looking to get their hands on cash to help grow into a national powerhouse quickly to take advantage of the soft housing market.

Buying shares of these companies is like shorting the housing market — sort of giving the average investor a chance to be a mini-John Paulson, the hedge fund mogul who made billions betting against the housing market in 2007. There were roughly 2.9 million foreclosures in 2009 and there are currently 6 million homeowners 60 days or more delinquent on their mortgage.

The companiesDJSP Enterprises, which saw revenues grow 31 percent last year, Altisource Portfolio Solutions, which reported a 182 percent jump in profits last year, and Lender Processing Services, whose $2.4 billion in revenue was up 29 percent last year — each offer a technology platform that links mortgage lender clients on one end and law firms clients on the other.

A fourth company, Prommis Solutions, which swung to a $7.9 million profit in 2009 from a loss in 2008, recently filed papers to go public.

The four companies profit, in large part, from the high volume of mortgage defaults — collecting fees from banks for each referral and from law firms, which file the foreclosure actions. In fact, the companies warn that a turnaround in the housing market or additional mortgage-modification plans from Washington could chill their profits.

Last week, shares of DJSP Enterprises got slammed, falling 25 percent on Friday, to $6.46, a 52-week low, after the company lowered its guidance for 2010 in the wake of a drop in the number of foreclosures.

It’s a strange, new sector of the housing finance sector, where bad news for America fattens the bottom lines for these companies, and good news for beleaguered homeowners knocks the stuffing — and dollars — from their bottom lines.

ARE FORECLOSURE MILLS Coercing Buyers for BANK OWNED homes? ARE ALL THE MILLS?

YOU MUST use Sellers Title Company! If you BUY before 6/30 I will give you an extra 3.5% towards your CC!
YOU MUST use Sellers Title Company! If you do by 6/30 I will give you an extra 3.5% towards your CC!
Found this in Trulia but it may get deleted once this is posted. It’s ok …thanks to Baby Jesus I saved it! But it goes exactly like this:

fannie mae owned.bank property. property is vacant.all offers requiring financing must have preapproval letter.all cash offer require proof of fund(see attachement).this property is eligible for home path renovation mortgage-as little as 3% down.buyer must close with seller closing agent(david j. stern law offices,p.a).investors not eligible for first 15days.*for showing instr please read broker remarks* note:offers must be submitted using attachment.close by 30 june and receive extra 3.5% in closing cost

Looking further into this I noticed the following:

  • Still in the name of the owner
  • NOT named under any REO
  • Home last sold for 245K
  • Now listed at 120K

Here is the BIGGEST:

I found a Bank-owned packet for this “SPECIALLY SELECTED” Agent/BROKER in many other REO’s and in this package it states the following:

9) Which title companies are the sellers and who do I make out the earnest money deposit to once offer is verbally accepted?

a. PLEASE LOOK ON MLX REMARKS FOR TITLE COMPANY. MLX WILL HAVE ONE OF THE FOLLOWING:
i. David Stern, P.A.
ii. Marshall C. Watson, P.A.
iii. Smith, Hiatt, & Diaz, P.A.
iv. Butler & Hosch, P.A.
v. Shapiro & Fishman, P.A.
vi. Spear & Hoffman, P.A.
vii. Adorno & Yoss, P.A.
viii. Watson Title

ix. New House Title (This is registered with FDLG address 9119 CORPORATE LAKE DRIVE, SUITE 300 TAMPA FL 33634)

10) Can the buyer use their own title company or must they use the title company selected by seller?

a. The buyer MUST HOLD ESCROW with Fannie Mae Title Company as stated on MLX.

NOW are we unleashing another dimension to this never ending SAGA?

We recently found out about WTF!!! DJSP Enterprises, Inc. Announces Agreement to Acquire Timios, Inc., Expand Presence Into 38 States , so is this a way for the Mills to Monopolize on the sales of these properties??

HERE IS same Agent/Broker for a FLORIDA DEFAULT LAW GROUP property:

THIS IS FANNIE MAE HOMEPATH PROPERTY.BANK OWNED.ALL OFFERS REQUIRING FINANCING MUST HAVE PREAPPROVAL LETTER. ALL CASH OFFERS REQUIRE PROOF OF FUNDS. THIS PROPERTY IS APPROVED FOR HOMEPATH AND HOMEPATH RENOVATION MORTGAGE FINANCING-AS LITTLE AS 3% DOWN,NO APPRAISAL OR MORTGAGE INSURANCE REQUIRED! ** FOR SHOWING INST PLEASE READ BROKER REMARKS** YOU MUST SUBMIT OFFER USING ATTACHMENT! INVESTORS NOT ELIGIBLE FOR FIRST 15DAYS.CLOSE BY JUNE 30 TO BE ELIGIBLE FOR EXTRA 3.5% SC. EMD: FL DEFAULT LAW GROUP.

Here is another same Agent/Broker for MARSHALL C. WATSON property:

FANNIE MAE OWNED.BANK PROPERTY. PROPERTY IS VACANT.ALL OFFERS REQUIRING FINANCING MUST HAVE PREAPPROVAL LETTER.ALL CASH OFFERS REQUIRE PROOF OF FUNDS(SEE ATTACHEMENT).THIS PROPERTY IS ELIGIBLE FOR HOME PATH RENOVATION MORTGAGE-AS LITTLE AS 3% DOWN.BUYER MUST CLOSE WITH SELLER CLOSING AGENT (LAW OFFICES OF MARSHALL C. WATSON).INVESTOR NOT ELIGIBLE FOR FIRST 15DAYS.*FOR SHOWING INSTR PLEASE READ BROKER REMARK* NOTE:OFFERS MUST BE SUBMITTED USING ATTACHMENT.CLOSE BY JUNE 30 TO GET 3.5% EXTRA IN CLOSING COST

Does the JUNE 30th Closing Day have any significance??

MAYBE it’s because of this? MERS May NOT Foreclose for Fannie Mae effective 5/1/2010I am just trying to make sense of this…Is there a grace period that followed?

  • What “if” the BUYER selects their own Title company? Does this eliminate their chances of ever even being considered as a buyer?
  • Why even bother to state this?
  • Is this a way for the selected Agent/ Broker to find the buyer and discourage other agents or buyers from viewing?
  • Was this at all even necessary to state?
  • Is this verbiage to coerce agents to get a higher commission rather than pass down the incentive of 3.5% towards closing cost “if” under contract by 6/30?
  • Why do investors have to refrain from buying for the first 15 days?

Coercion (pronounced /koʊˈɜrʃən/) is the practice of forcing another party to behave in an involuntary manner (whether through action or inaction) by use of threats, intimidation, trickery, or some other form of pressure or force. Such actions are used as leverage, to force the victim to act in the desired way. Coercion may involve the actual infliction of physical pain/injury or psychological harm in order to enhance the credibility of a threat. The threat of further harm may lead to the cooperation or obedience of the person being coerced. Torture is one of the most extreme examples of coercion i.e. severe pain is inflicted until the victim provides the desired information.

RELATED STORY:

LENDER PROCESSING SERVICES (LPS) BUYING UP HOMES AT AUCTIONS? Take a look to see if this address is on your documents!

DJSP Enterprises, Inc. Reports Revenue of $71.6 Million and Adjusts Its 2010 Guidance AKA Law Offices of DAVID J. STERN

PLANTATION, Fla., May 27 /PRNewswire-FirstCall/ — DJSP Enterprises, Inc. (Nasdaq: DJSP, DJSPW, DJSPU), one of the largest providers of processing services for the mortgage and real estate industries in the United States, today announced financial results for the three months ending March 31, 2010.

First Quarter Financial Highlights

Total revenue for the quarter increased 30.1% to $71.6 million from $55.0 million in last year’s comparable period.
Excluding client costs, revenue from the quarter increased to $30.8 million from $30.0 million compared to same period last year.
Adjusted Net Income was $8.7 million for the first quarter or $0.35 per share.
– the adjusted net income would have increased by $732 thousand but for one time
interest on bridge financing and other expenses related to the transaction in which
the company acquired its processing operations
Adjusted EBITDA for the first quarter was $14.4 million.

Continue here …

RELATED STORY:

NASDAQ, DJSP Enterprises Major Shareholders David J. Stern (Law office Foreclosure Mill) and Kerry S. Propper Subject of Department of Justice Investigation And SBA Law Suit.

Banks and their RIDICULOUS Foreclosure tabs…Mills, REO’s etc.

You know from the ridiculous fees these banks pay from the Mills to the keeping up with the REOS’ (if they keep up with maintenance).

Does it make any $en$e why they DO NOT work it out with the homeowners?

I mean if you take a look at what they end up selling for at auction or in a short sale…Does it make any $en$e??

Again, does it make any freaking $en$e?

Now take a look at Foreclosure Mill Law Offices of David J. Stern in Plantation (DJSP) for example Small Foreclosure Firm’s Big Bucks: Back Office Grossed $260M in 2009:

and his assets below:

Source: AmericansUnitedForJustice.org

http://AmericansUnitedForJustice.org is working on Law Offices Of David J. Stern’s #2 Cheryl Samons stay tuned

DOES THIS MAKE ANY $EN$E?

DOJ are you watching?

Law Firm of David J. Stern (DJSP) Appears to Be Under State And Federal Investigation For Fraud, Stern Law Firm Even Has It’s Own “Michael Clayton”.

Forrest McSurdy Michael Clayton came to Stern’s rescue on my ordeal with the MILL! So I can vouch for what this article states about the “fixer” is 100% accurate !

Meticulously Written by Florida’s Very Own Bill Warner Private Detective, SARASOTA TO PANAMA CITY FL

Friday, May 14, 2010

A subsidiary of a company that is a top provider of the documentation used by banks in the foreclosure process is under investigation by federal prosecutors. The prosecutors are “reviewing the business processes” of the subsidiary of Lender Processing Services Inc., (LPS) based in Jacksonville, Fla., according to the company’s annual securities filing released in February. People familiar with the matter say the probe is criminal in nature.

Lender Processing Services Inc., (LPS) does work for the Law Firm of David J. Stern (DJSE) in Plantation Fl. Michelle Kersch, an LPS spokeswoman, said the subsidiary being investigated is Docx LLC. Docx processes and sometimes produces documents needed by banks to prove they own the mortgages. LPS’s annual report said that the processes under review have been “terminated,” and that the company has expressed its willingness to cooperate. Ms. Kersch declined to comment further on the probe.

A spokesman for the U.S. attorney’s office for the middle district of Florida, which the annual report says is handling the matter, declined to comment.  The case follows on the dismissal of numerous foreclosure cases in which judges across the U.S. have found that the materials banks had submitted to support their claims were wrong. Faulty bank paperwork has been an issue in foreclosure proceedings since the housing crisis took hold a few years ago. It is often difficult to pin down who the real owner of a mortgage is, thanks to the complexity of the mortgage market. LPS was recently referenced in a bankruptcy case involving Sylvia Nuer, a Bronx, N.Y., homeowner who had filed for protection from creditors in 2008.

Diana Adams, a U.S. government lawyer who monitors bankruptcy courts, argued in a brief filed earlier this year in the Nuer case that an LPS employee signed a document that wrongly said J.P. Morgan Chase & Co. had owned Ms. Nuer’s loan.  Documents related to the loan were “patently false or misleading,” according to Ms. Adams’s court papers. J.P. Morgan Chase, which has withdrawn its request to foreclose, declined to comment.

A Florida state-court judge, in a rare ruling, said a major national bank perpetrated a “fraud” in a foreclosure lawsuit filed by the Law Firm of David J. Stern, raising questions about how banks are attempting to claim homes from borrowers in default.

The ruling, made last month in Pasco County, Fla., comes amid increased scrutiny of foreclosures by the prosecutors and judges in regions hurt by the recession. Judges have said in hearings they are increasingly concerned that banks are attempting to seize properties they don’t own.

The Florida case began in December 2007 when U.S. Bank N.A. sued a homeowner, Ernest E. Harpster, after he defaulted on a $190,000 loan he received in January of that year. The Law Offices of David J. Stern, which represented the bank, prepared a document called an “assignment of mortgage” showing that the bank received ownership of the mortgage in December 2007. The document was dated December 2007.

But after investigating the matter, Circuit Court Judge Lynn Tepper ruled that the document couldn’t have been prepared until 2008. Thus, she ruled, the bank couldn’t prove it owned the mortgage at the time the suit was filed. The document filed by the plaintiff (through the Law Firm of David J. Stern), Judge Tepper wrote last month, “did not exist at the time of the filing of this action…was subsequently created and…fraudulently backdated, in a purposeful, intentional effort to mislead.” She dismissed the case.

Forrest McSurdy, a lawyer at the David Stern firm (McSurdy is General Councel for Stern law Firm) that handled the U.S. Bank case, said the mistake was due to “carelessness.” The mortgage document was initially prepared and signed in 2007 but wasn’t notarized until months later, he said. After discovering similar problems in other foreclosure cases, he said, the firm voluntarily withdrew the suits and later re-filed them using appropriate documents.

Foreclosure mill lawyer Forrest McSurdy calls truth a “technicality”. Lawyers operating foreclosure mills often are paid based on the volume of cases they complete. Some receive $1,000 per case, court records show. Firms compete for business in part based on how quickly they can foreclose. The David Stern law firm had about 900 employees as of last year, court records show.


“The pure volume of foreclosures has a tendency perhaps to encourage sloppiness, boilerplate paperwork or a lack of thoroughness” by attorneys for banks, said Judge Tepper of Florida, in an interview. The deluge of foreclosures makes the process “fraught with potential for fraud,” she said (Law Firm of the David J. Stern) .

At an unrelated hearing in a separate matter last week, Anthony Rondolino, a state-court judge in St. Petersburg, Fla., said that an affidavit submitted by the David Stern law firm on behalf of GMAC Mortgage LLC in a foreclosure case wasn’t necessarily sufficient to establish that GMAC was the owner of the mortgage. “I don’t have any confidence that any of the documents the Court’s receiving on these mass foreclosures are valid,” the judge said at the hearing.

Forrest G. McSurdy of Stern & McSurdy, P.A. Incorporated by David J Stern, Forrest G McSurdy, Stern and McSurdy, P.A. is located at 801 S University Dr Ste 500 Plantation, FL 33324. Stern and McSurdy, P.A. was incorporated on Friday, October 08, 1999 in the State of FL and is currently active. David J Stern represents Stern and McSurdy, P.A. as their registered agent.

Forrest McSurdy of the Law Firm of David J. Stern in Plantation Florida appears to show up everytime there is a legal mess to clean up for the Stern Law Office, McSurdy is Stern’s fixer ”Michael Clayton”.   ”Michael Clayton Movie” The Truth Can Be Adjusted Plot: A law firm brings in its “fixer” to remedy the situation after a lawyer has a breakdown while representing a chemical company that he knows is guilty in a multi-billion dollar class action suit.


Forrest McSurdy of the Law Firm of David J. Stern in Plantation Florida shows up as legal counsel for all of Stern’s attorneys when there is a Florida Bar complaint filed agasint them.

Chardan 2008 China Acquisition Corp. (CACA, CACAW, CACAU) signed a definitive agreement for a business combination with DAL Group, LLC, a provider of processing services for mortgage lenders and servicers in Florida. At the closing of the business combination with Chardan, DAL will own 100% of the business and operations of Default Servicing, Inc. and Professional Title & Abstract Company of Florida and the non-legal operations supporting the foreclosure and other legal proceedings handled by the Law Offices of David J. Stern, P.A., collectively known as the Company.  Default Servicing, Inc is now STERN HOLDING COMPANY – DS, INC see Florida Division of Corporations records click here.

Upon consummation of the transaction, Beijing, China-based Chardan will change its name to DJSP Enterprises, Inc. “DJSP” (David J. Stern Processing), and its stock is expected to trade on the Nasdaq under the symbols DJSP, DJSPU, and DJSPW. Assuming no redemptions by Chardan shareholders, the current owners of the company, the “Stern Parties” will receive approximately $111 million from DAL and the right to receive another $35 million in post-closing cash. In addition, “Stern Parties” will also hold equity interests. Kerry Propper, Chardan’s chief executive officer said, “The acquisition should generate significant value for our shareholders. David J. Stern, who will be DJSP’s CEO, has an impressive record building this business by continually strengthening the customer relationships on which it is based.”

Chardan 2008 China Acquisition was run by Kerry S. Propper he has had some problems with the SBA and the Department of Justice as did his father Dr. Richard D. Propper. Kerry S, Proper, Richard D. Propper and Royale Holdings own 1,151,128 shares of Chardan 2008 China Acquisition, they are the majority share holders of the company now directly linked to David J. Stern and DJSP Enterprises, Inc..

DAVID J. STERN LAW OFFICE is DJSP Enterprises on NASDAQ, Major Shareholders David J. Stern and Kerry S. Propper the Subject of Department of Justice Investigation And SBA Law Suit.
1). Kerry S. Propper was the subject of 2003 Federal law suit filed in Conn. by the Small Business Administration one of his co-defendants was Acorn Ct Investments LP, they all ended up paying the SBA $1,764,333 in total see link http://www.paed.uscourts.gov/documents/opinions/04D0487P.pdf

2). Kerry S. Propper was/is under Dept of Justice investigation with his father Richard Propper. One of their partners was convicted of defrauding the SBA and sent to Federal prison for 70 months. SBA seeks to recover $96 million from Richard Propper and the rest of the crew in yet another SBA lawsuit, see info below……

DEPARTMENT OF JUSTICE;
FRIDAY, DECEMBER 29, 2006, U.S. Files Suit Against John Torkelsen, Richard Propper, Daniel Beharry, & Sovereign Bank Alleging Fraud of $32 Million Against the Small Business Administration.

WASHINGTON – The Justice Department announced today that it has filed a lawsuit accusing John Torkelsen, Richard Propper, Daniel Beharry, and Sovereign Bank of defrauding the Small Business Administration’s Small Business Investment Company (SBIC) program of $32 million. The suit was filed in the Eastern District of Pennsylvania under the False Claims Act, which allows the United States to recover up to three times the amount of its losses plus civil penalties.


The government’s complaint alleges that Torkelsen, Propper and Beharry violated the conflict of interest and management fee rules of the SBIC program by engaging in multiple secret transactions that funneled government money into companies controlled by Propper and Beharry or Torkelsen and his family. The SBIC program has rules designed to prevent the unauthorized investment of government funds in companies controlled by those who act as managers of the SBICs. The alleged fraud is believed to be the largest perpetrated upon the program to date.


The SBIC program, administered by the U.S. Small Business Administration, was created in 1958 to fill the gap between the availability of venture capital and the needs of small businesses in start-up and growth situations. The government, itself, does not make direct investments or target specific industries. Rather, the SBIC program is a “fund of funds” – meaning that portfolio management and investment decisions are left to qualified private fund managers. Small businesses which qualify for assistance from the program are able to receive equity capital, long-term loans and expert management assistance.


The investigation of the fraud allegations against the defendants was conducted by the U.S. Attorney’s office in Philadelphia, Pa.; the U.S. Small Business Administration’s Office of Inspector General and Office of General Counsel; the Federal Bureau of Investigation; and the Justice Department’s Civil Division. The United States has settled with, or reached settlement in principle with, a number of other individuals or entities involved in the alleged fraud.


David J Stern Attorney, Related People:

Adam S Gumsom
•Forrest G McSurdy
•Gibbons Cline
•Howard Bernstein
•James Rosen
•Nuccia McCormick
•Roger Wittenberns
•Spring Baldini


Related Companies:
•Attorneys’ Title Agency, P.A.
•Default Services, Inc.
•Default Servicing, Inc.
•Law Offices of David J. Stern, P.A.
•Professional Title and Abstract Company of Florida
Stern and McSurdy, P.A.
•Sunset Servers of South Florida, Inc.
•The Harborage Association Inc.