Bad behavior ruins foreclosure firm Steven J. Baum P.C.

November 26, 2011 Steven J. Baum P.C. law firm has announced that it will shut down after losing much of its client list in the wake of controversial foreclosure practices. They are one of many US firms that are accused of aggressive and duplicitous practices in foreclosing on homeowners that defaulted on their loans.

Last month Steven J. Baum P.C. agreed to pay a $2 million penalty and to change its practices in settlement with the US Attorney’s office, which was investigating whether the firm filed misleading legal papers to expedite foreclosures.

The firm’s problems mounted further when the New York Times published photos of a firm Halloween party, at which employees were dressed in costumes mocking the people that had lost their homes. After the photos were published, the mortgage giants Freddie Mac and Fannie Mae blacklisted the firm, forbidding servicers of their mortgages from using them.

The firm’s two offices, in Amherst, N.Y., and Westbury, N.Y,, are both set to close, with 89 employees to lose their jobs.

Read more at dealbook.nytimes.com.

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