Replies to This Discussion

Permalink Reply by Laura Levenson on October 2, 2011 at 8:58am

As I posted earlier in this forum, according to the FTC MARS Rule, YES, attorneys are exempt from this.   I am still in disbelief of this, as they (DISCLAIMER: Some of them!) have been some the biggest offenders of taking money from trusting homeowners in distress!  

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Permalink Reply by DAVID REEVE on October 2, 2011 at 9:22am

You are sure right about that one!  How about the attorney that says "just let it go to foreclosure" .

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Permalink Reply by Paul Francis - Vegas Short Sales on October 2, 2011 at 9:54am

You are correct concerning the FTC MARS rule -- AS LONG as they follow certain conditions.

Explained on Page 2 of this ---> http://www.dre.ca.gov/pdf_docs/ca/ConsumeAlert_WarningreMassLitigat...

 

However... as explained on that same page right under the four conditions --- certain states have more restrictive rules such as California. Personally.... I think it should be up to the State where the property is of what can and can't be done anyways.

 

I supply the guidance from California because quite personally.... I think California is heads and shoulders above the majority of states when it comes to protecting homeowners from being scammed.... and that's probably because so many California homeowners got scammed with the loan mod promises when this whole foreclosure fiasco first started. (I can even think of a couple of my clients that got Loan Mod. scammed by California Attorneys for a total of about $8,000 a couple of years back when there were no guidelines.)

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Permalink Reply by Dean E Eshelman, CPA, CDPE, IRES on October 2, 2011 at 8:59am

I like the words "special program". There are no special programs that are above board. We all know what the programs are.

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Permalink Reply by DAVID REEVE on October 2, 2011 at 9:21am

Seems like the "special programs" from attorneys end up lining their pockets most of the time. Oddly

enough, it makes a bad name for attorneys when believe it or not there are a few out there that really do have a heart and are helping.

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Permalink Reply by Joanna Durrant on October 2, 2011 at 1:22pm

If I am correct, here in Arizona a law was passed not allowing any up front fees for modification, and that fees could only be paid upon successful completion. That'll get the attorneys back into their own fields real quick, I'd think.  I don't like seeing attorneys messing in short sales. They get paid regardless. They don't have the time or the incentive to stay on top of it and all the little intricacies that can and do pop up like a good Realtor does. (Notice I said good, which all Realtors are not.) Attorneys may be useful for certain legal issues that come up, but please, when it comes to real estate, modifications, short sales, etc., stay in your own field of expertise and stay out of it. I'm not supposed to give legal advise, you shouldn't be meddling in real estate. When was the last time you communicated with the BPO agent and were able to give them the low down on your marketing history and market comparables so that the correct valuation is supported and short sale is facilitated???  Exactly.  And I am so sick of hearing BK attorneys advise their clients to just let the home foreclose, that somehow it's "not going to make a difference."  For starters, tell that to the rest of the  neighborhood .

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Permalink Reply by Maria Evans on October 2, 2011 at 6:07pm

Attorneys should not touch short sales for a simple reason: for $1500 (maximum $2500) they don't have same motivation as realtors. Their paralegal either since they will not even get paid that but a salary that will come if you close or not on y SS. No motivation.
I don't think most realtors should touch short sales either since most don't have the necessary perseverance to close on short sales. Again, to CLOSE not only to list and grab buyers for other
Properties (those may lose their licenses).
Once I referred an attorney to sellers and he did the same. The problem was that my clients felt that I knew much more about short sales and fired him.
Suggestion ... Check if your local Court House has a program do help homeowners to do a loan modification. Here they help for free. Sorry attorney... - . When they receive the Foreclosure notice tell them to go to the court house and say they would like to do a loan modification. They will set up a meeting with clients, bank attorney and CH person. I heard it is a very good program but most people don't know.

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Permalink Reply by Michael Campus ABR,SFR,SRS on October 2, 2011 at 11:44pm

Even the banks advertise "DO NOT PAY FOR LOAN MODIFICATION" because the borrower can do it themselves for free.

What can an attorney do that the borrower or a loan mod company can't? File BANKRUPTCY!!!.There's your special program. 

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Permalink Reply by Richard Zaretsky on October 3, 2011 at 1:19am

Eric -

I am an attorney and needless to say a proponent of ABSOLUTILY using an attorney for at least part of the sort sale or loan modification process - the last part where you have to determine what the damn letter offer and documents really mean and what effect will they have upon the borrower.  After all, only a lawyer can give that advice to a borrower.

 

However, there are a ton (ok, probably 3 or 4 tons) of attorneys that make unrealistic much less not even true statements and promises.  Many of these attorneys don't do the work themselves and even outsource the work to non-attorneys who don't even work for them in their office. Promises or statements such as, I KNOW THE LENDER REPRESENTATIVE, or WE HAVE AN INSIDE CONTACT AT YOUR LENDER, or YOU WILL DEFINITELY BE APPROVED, or I CAN KEEP YOU IN THE HOUSE WITHOUT PAYING THE BANK FOR ANOTHER YEAR, or anything else that is other than "WE WILL DO OUR BEST, BUT THERE ARE NO GUARANTEES" - are to be avoided like the plague.  Also, like finding a good surgeon for complicated surgery - you don't want an attorney that has done this a few dozen times.  Find someone that has a firm grip on the subject (also sometimes like a "grip on reality") and understands what the lender policies are and how to use them to analzye your particular situation.  As stated by others and as advised by myself, if there is a chance that they can do it themselves, then try it and save our fee.  I give that advice out freely and usually won't even take a client unless and until they have read specific articles in my blog (see below).

 

You can see my blog at SHORT SALE AND LOAN MODIFICATION ARTICLES - TABLE OF CONTENTS   to see other issues attorneys need to address or the borrower needs to address with the lender and the attorney.

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Permalink Reply by Bryant Tutas on October 3, 2011 at 1:46am

I can vouch that Richard Zaretsky is one of the good guys. I highly recommend his services to anybody needing an attorney in Florida.

Richard, Articles like this must be very frustrating to read. Your business just like ours is rampant with incompetency. Sad but true.

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Permalink Reply by Maria Evans on October 3, 2011 at 5:18am

Brian, do you do SS in Miami area??

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Permalink Reply by storm bradford on October 3, 2011 at 2:45am

.Loan mods are in and of themselves, in the majority of cases a waste of time and only exacerbate the borrowers problems. That's why over 50% of those homeowners are foreclosed upon.

Because a mortgage transaction is nothing more, nothing less a contract, it is malpractice for an attorney to initially do anything other than to examine the contract for contract breaches and/or tortuous conduct.

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