Florida foreclosure bargains in doubt

WEST PALM BEACH, Fla., Dec. 10 (UPI) -- Some Florida homes sold at foreclosure this week have gone for as little as $200, but the bargain-basement prices may not stick, lawyers say.

Cases resulting from the collapse of the David J. Stern law firm went to auction with no bank representation, bids or proper public notice, The Palm Beach Post reported.

Some of the properties sold for more than $240,000 at their peak.

Stern's firm, branded a "foreclosure mill" for its volume of cases, lost most of its business following allegations of misconduct. Fannie Mae and Freddie Mac cut ties with it in November.

Some of the auction sales were made without the required public advertisement, and the Palm Beach County court will not certify a sale without proof the auction was advertised once a week for two consecutive weeks in advance.

"All these sales that have taken place will have to go back into the system," said investor Don Cameron, who realized the problem after buying three properties at auction, only to find out they were not properly advertised. "It's going to be a complete bottleneck again."