TAMPA - In a regulatory filing many homeowners may find ironic, a mortgage business run by a Florida lawyer whose "foreclosure mill" is under state investigation says it may close if unable to resolve a default with its lender. DJSP Enterprises Inc. handles the non-legal work for the Plantation law offices of David J. Stern. On Monday, the company said it has not paid its November rent and that its DAL Group LLC unit defaulted on a $15 million line of credit to Bank of America.
The subsidiary entered into a forbearance agreement last week with the lender to give it until the end of the month to develop a business plan and show that it can repay the money.
However, the company seemed glum on the future. There "can be no assurance," the company said it the filing, that it will be able to obtain additional forbearance agreements with creditors. "If it is unable to accomplish any of the foregoing, it will not be able to continue its business operations," the filing said. The news comes the same day Wells Fargo announced it has cut ties with Stern's law firm. Mortgage financing companies Fannie Mae and Freddie Mac severed ties recently with the firm and removed files from its offices, resulting in the loss of 90 percent of its business. The law firm laid off 90 percent of its staff.
Florida Attorney General Bill McCollum is investigating Stern's firm and three other large firms for submitting false or misleading statements in foreclosure proceedings.
Reporter Shannon Behnken can be reached at (813) 259-7804 or . Follow her on Twitter @TBORealtyCheck.
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