The state group that disciplines lawyers is debating how to deal with reports of attorneys using errors and false statements to retake property in foreclosure cases.
Some of the most egregious Florida examples come from Sarasota County, where a study this summer that looked at the civil courts system found three of four foreclosure cases that went forward without the proper paperwork.
In one case, an attorney for a lender used a false reason to schedule a Sarasota widow’s home for a foreclosure sale.
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There are a few bad eggs in every basket, and the basket of attorneys is no different. There are ways to find a good attorney to help you with your mortgage modification.
First of all, you should avoid an attorney who charges by a fixed percentage of your mortgage. The focus should be on how complicated your particular case is, and how many hours the attorney expects to expend on your case. For instance, a mortgage modification for a client who is already in foreclosure requires more work than that for a client who is only a month behind. The size of the loan generally has very little to do with it.
Secondly, an attorney should not ask for a non-refundable fee upfront. Most reputable attorneys will ask for a retainer that they will put into a client trust account. That money is not theirs until they earn it by performing the mortgage modification, or whenever else you agree. They are ethically forbidden from taking money out from the client trust account until the fee is earned, a prohibition strongly enforced by bar associations.
Lastly, many attorneys will return fees if the mortgage modification is not successful. They will retain a nominal fee for their time, but will return the bulk of the fees. However, attorneys will be unlikely to offer a money-back guarantee when the loan is many months behind, or foreclosure has already started.
Hiring an experienced modification attorney can really help a borrower get the best mortgage modification possible. They have experience with the various banks, and their various rules, which change from week to week because the banks are still learning the process as well. Don’t let the actions of a few bad apples scare you away from hiring a lawyer who can really help you.