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Mortgage Modification is the Practice of Law

Posted in Modification is the Practice of Law

YOU GET WHAT YOU PAY FOR Virtually all of my modification clients tried it on their own and were turned down. Servicers will turn a borrower down and not tell them why. There are many tricks and techniques which we have learned with are not commonly known. It is to the advantage of servicers for modification to fail. Servicers get paid more if there is a foreclosure, while the home owner and the investor are the losers. Yes, many borrowers do succeed with their modifications, however, many just get the run around. The non-attorneys have for the most part been put out of the modification business because they cannot charge up-front fees, and that is good. Modifying a mortgage is the practice of law. Non-attorneys should never have been doing modifications in the first place. If you hire an...

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You Get What You Pay For

Posted in Modification is the Practice of Law, Mortgage Modification

Virtually all of my modification clients tried it on their own and were turned down. Servicers will turn a borrower down and not tell them why. There are many tricks and techniques which we have learned with are not commonly known. It is to the advantage of servicers for modification to fail. Servicers get paid more if there is a foreclosure, while the home owner and the investor are the losers. Yes, many borrowers do succeed with their modifications, however, many just get the run around. The non-attorneys have for the most part been put out of the modification business because they cannot charge up-front fees, and that is good. Modifying a mortgage is the practice of law. Non-attorneys should never have been doing modifications in the first place. If you hire an attorney, it should be an in-state...

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FTC tries to prevent you from hiring an attorney to assist with modification

Posted in Federal Trade Commission, Modification is the Practice of Law, Mortgage Modification

On the mortgage modification front:   Martin Andelman writes regularly regarding mortgage modification. This is latest article:   The secret NPV formula used to qualify for HAMP loan modifications that no one is allowed to know. Transparency at it’s finest.   Watch out. Mortgage modification is extremely complex, but:   The Federal Trade Commission is trying to prevent you from hiring an attorney to help you with your modification.   I wrote this letter to the Federal Trade Commission about this proposed rule.   Others too have written to the FederalTrade Commission about this proposed...

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FTC Wants To Prohibit Up-Front Fees

Posted in Bankruptcy, California, Federal Trade Commission, Modification is the Practice of Law, Mortgage Modification

The Federal Trade Commission is up to no good. The FTC proposes to enact a regulation which will prohibit third-party modification providers, including attorneys, from charging advance fees. See: http://www.ftc.gov/opa/2010/02/mars.shtm for a summary of the proposed regulation. See http://edocket.access.gpo.gov/2010/2010-4651.htm for the full text of the proposed regulation. California passed a law forbidding all up-front fees on mortgage modifications, including fees paid to attorneys. For the full text of the California law, see http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_94_bill_20091011_chaptered.html. There is no other area of law practice where clients are prohibited from paying their lawyers in advance. What has happened in California is that attorneys have stopped providing modification services in most cases. The way attorneys have sidestepped the law is to file suit against each lender they are negotiating with. The California law does not prohibit advance fees when litigation is involved. This raises the cost...

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