FORECLOSURE RESCUE AND MORTGAGE MODIFICATION FRAUD - LAWYER ALERT ISSUED
Hello Everyone!
Florida Bar made public the misleading representations that have recently plagued the Loan modification industry nationwide. 702-307-4070 ext 107 The Loan modification industry has sprung up faster than weeds - mostly through mortgage brokers that have seen their ability to make loans dry up in this recession and are applying net office sales techniques to the Loan modification boom. The problem is that many states have enacted new laws to put them out of business.
The situation is important enough that an "Ethics Alert"was issued by the Florida Bar on March 15th. Check the Nevada Law of Ethics Alert too.
Typically, the mortgage modification firm - which often uses "net offices" just like in the good old lending days and are just where a sales person hangs out - will recruit an attorney to "watch" the modification process and they will advertise that there is an attorney "representing" the client's (the borrower's) interests. Typical language is, "our attorney will represent you in the modification process and review all of your documents," or similar. In reality the attorney does almost nothing or works under the direct control of a non-lawyer. Be very careful. There are too many frauds out there that states they can do Las Vegas Short Sales, Las Vegas Loan Modifications, Las Vegas Foreclosure Preventions and so on.
Florida passed a Mortgage Rescue Consultant law in 2008and many firms have sought to stay in the lucrative Florida mortgage assistance market by trying to skirt that law by using a letter opinion by the Florida Attorney General that exempts attorneys from work they are doing in defending a client in a foreclosure. Check back and I will have the Nevada Law. The result however is a plethora of ethics violations for the lawyers that get involved and Unauthorized Practice of Law (UPL) violations for the mortgage loan modification firm if they give any type of legal service.
Usually these firms charge between $1,500 to $3,500 up to $10,000 for Loan modification services - the price is often set by the salesman (who is not an attorney). The salesman gets a commission (anything above the set fee) and the attorney gets a nominal review fee - or something up to 10% of the total fee if special services are provided, such as using the attorney trust account to deposit the fee for clearance and then disbursement to the loan modification firm. The Bar also issued an instructive articleon how one Loan modification firm was prosecuted, saying, "Florida lawyers are being approached about working with nonlawyers offering foreclosure-related services to consumers, but the proposals present a veritable minefield of ethical problems."
If you have any questions or concerns in this area of Las Vegas or Henderson, write me and I will guide you to a Licensed Professional that will “Try” to do your Loan Modification for FREE if you do not qualify I will Short Sale your House as another OPTION to Foreclosure.
www.WadkinsHomeTeam.com To look for a Home, Bank owned Home, Information about what your Las Vegas Home, Henderson Home Summerlin Home is worth.
www.VegasShortSaleHomes.com To gain FREE information about what is a Short Sale
Steve & Gerri Wadkins, Realtors-Advanced CDPE 702-307-4070 ext 107
Be sure to contact your own attorney for Nevada state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.