Its practice was primarily in real estate law, particularly in representing lenders and servicers in residential foreclosure actions in its later years.

In the wake of the subprime mortgage crisis in the late 2000s (decade), Baum handled 40% of all foreclosures in the state, the most of any law firm in New York.

Homeowner activists singled out the firm for its aggressive tactics that ruled out mortgage modifications, and brought class action suits against it.

Many lawyers for homeowners and consumer activists derisively referred to Baum as a "foreclosure mill", and it was investigated by the state and federal governments for its role in the robo-signing scandal, in which forged documents were filed to initiate actions on behalf of clients who may not have been the original lenders or servicers.

[5] The firm later paid the Department of Justice $2 million, and agreed to change its practices, to settle the claims brought against it by Preet Bharara, U.S. Attorney for the Southern District of New York.

It admitted no wrongdoing beyond "occasionally [making] inadvertent errors in its legal filings in state and federal court.

"[6] In October 2010, the state's chief administrative judge imposed a rule requiring clients to affirm the original documents under penalty of perjury.

The employees were dressed like homeless or poor people, and wore signs around their necks saying things like "3rd Party Squatter – I Lost My Home & I Was NEVER Served", a common response to foreclosure proceedings.

Another image depicted a row of mock houses identified as "Baum Estates" with foreclosure notices in front, and a third display imagined the death of a Manhattan attorney who had filed a class action suit against the firm.

"[11] Two days later, Baum announced that the firm would close down due to the business lost by the Fannie and Freddie ban.