WHY AND WHEN YOU NEED A LAWYER

For the next several days we will consider the use of professionals in connection with mortgage disputes. We’ll cover everything from the most modest modification to bankruptcy, litigation, and appeals. These will also be the subject of several free videos that I’ll record from my home office.

The first thing you need to do is decide what you want. Do you want to stay in the house? Do you want to fight for a principal reduction? Do you simply want to delay proceedings? I’m starting this series off with the attorney because everything you do from this point forward must be viewed from a legal context even if you never hire an attorney.

I’m starting off with the lawyer even though it is more likely that you will start with one of the other professional services. We will cover all the other services including title search, securitization search, mortgage analysis, firms that specialize in modification, firms that specialize in short sales, and firms that specialize in restructuring. Each service has a value, but that does not mean that you need to employ any or all of them. You will probably need some combination of professional services, but remember that you are the boss and nobody has the right to tell you what decision you should make.

As you probably know, the number of professional service firms offering to relieve your distress is increasing virtually every day. Several states have passed laws to protect consumers from unscrupulous people who are neither professional nor honest. As a general rule, if the firm is not licensed, and they are asking for a substantial fee before they begin work, it would be wise to make further inquiry on the Internet, with the Better Business Bureau, and on this blog or other resources on the Internet. Unfortunately there are a number of firms that “take the Money and run” leaving you deeper in the hall than you started. However the fact that a firm is not licensed does not raise a red flag by itself. There are several experienced and knowledgeable people providing mortgage assistance whose service is simply not covered by any licensing board. State legislatures are still catching up with this.

Any professional or any other person that guarantees a result should be avoided. Even if they have references they should still be avoided. The references are probably a sham. The practical effects and outcomes for any one particular case cannot be predicted with certainty. In fact, it would be fair to say that in the best of circumstances there is a probability that the matter could be resolved at least partially to your satisfaction.

When it comes to picking a lawyer the first thing you want to look for is someone who is licensed in the state in which the property is located. There are some exceptions–lawyers who practice in many states as nonresident attorneys by establishing a relationship with a local attorney. The second thing you want to look for is someone who both offers you help and hope and can explain the services being offered and the reasons those services could be helpful to you. When I say that they can explain it, I mean that they can explain it in words and concepts that you understand. From my Wall Street days I have always followed the rule that one should never buy anything they do not totally understand. Some lawyers may try to impress you with complex terms and abstract theories. If they are able to translate those terms and theories into language that you can understand, you are in the right place. If you’re a left in the position of not knowing anymore than you did when you walked into the lawyer’s office, I would suggest you go find another lawyer.

Like any other profession lawyers, in multiple varieties. Some specialize in Chapter 7 or Chapter 13 bankruptcies. If they are familiar with at least some aspects of securitized mortgage loans there are quite a lot of things that they can do. One thing they can do (and guarantee it) is file a petition for bankruptcy relief which automatically results in a STAY of all proceedings or actions against you that are attempts to collect a debt. So even if a sale is pending the filing of a bankruptcy would cancel the sale until the bankruptcy judge enters an order lifting the automatic stay.

Other attorneys specialize in mortgage litigation. I find that each attorney has their own style and favorite tactics and strategies. There is no magic bullet. These attorneys will generally file a law suit or counterclaim based upon a number of theories (causes of action) and at the same time file a motion for emergency temporary injunction to stop the pretender lender from going forward with the foreclosure proceedings or the sale of the property.

The advantage of going to an attorney is that an experienced, knowledgeable and competent attorney will be able to tell you where you stand and give you a reasonable description of your prospects. The best way to keep the cost down and the quality of the advice high is to be able to provide the attorney with as much information as possible on your particular loan.

At a minimum, you should walk into an attorney’s office with a fairly complete title search, title report, copies of relevant documents, and comments from the title examiner, who should be familiar with the practical consequences of securitization. No professional likes to sift through a pile of papers that is disorganized. So the more you can do to organize those papers chronologically, the more the attorney will be favorably disposed to accept a retainer on your case.

There are a number of law firms around the country that have organized themselves in opposition to the foreclosure mills that are employed by the pretender lenders. So far, my experience with several of them indicates they are pretty good and getting better and better at representing homeowners on a mass basis. They also have the ability to reduce the fees that you might pay to a legal practitioner on a single case.

For more information, wait for the video to come out. It’s free, and it will give you more information than any single article on the blog.