As I reported two weeks ago, the large-volume foreclosure firm Steven J. Baum PC of Amherst NY is closing. The Buffalo News is now reporting that Pillar Processing LLC, a foreclosure services company affiliated with the Baum office is also shutting its doors. Pillar employees 590 full-time and part-time employees in Amherst.
I wrote an extensive blog last year (October 22, 2010) exploring the unusual arrangement between Pillar and the Baum office. My analysis is that Baum basically spun off the back office foreclosure processing services into a separate non-law firm entity, and then sold it to private investors for something like $60 million. If this is accurate, I would suspect those investors might be somewhat unhappy now.