LPS Default Solutions

A Louisiana bankruptcy case involving a single foreclosure best illustrates the problems with the banks' outsourcing their mortgage default work to firms like LPS. The result of this money-saving maneuver by banks winds up costing everyone else dearly.

Two foreclosure middlemen, LPS Default Solutions and Prommis Solutions, are accused of illegally paying non-attorneys to practice law so banks and law firms could save on document filing costs. It's more than a money issue -- the errors these rushed non-attorneys are making may lead to another messy stage of the mortgage meltdown.