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Posted In: Legislation , Mortgage Foreclosure Update , Opinion , loan modifications , loss mitigation

By Sulaiman & Associates on December 21, 2010 1:28 PM | Permalink | Comments (0) PHONE:

According to the New York Times, a new state law in California is making it difficult for loan modification-
COMMENTS:
seeking homeowners to obtain an attorney's assistance. This isn't because attorneys aren't allowed to assist
homeowners in obtaining a modification, it's because they cannot charge the client any money until the work is
complete. Anyone who has attempted to get a loan modification can tell you that the process can take months
upon months to complete. During that time, the attorney has costs to cover and bills to pay. Some
modifications fail. So, in that case, what is "completed" work?

As a result, many attorneys are just turning away potential clients who want help with their loan modifications.
ENTER TEXT FROM THE IMAGE ABOVE:
This is an example of a regulation that fails to work as planned. The obvious intent was to prevent fly-by-night (Enter Text)
attorneys and mortgage rescue companies from fleecing California residents. Since California is largely a non-
judicial foreclosure state, attorneys cannot simply make loss mitigation part of the services they offer in SUBMIT
addition to litigation. The result of this rule is that people's access to the legal profession is limited by market
forces, which means more people will likely lose their homes. This, in turn, increases the shadow inventory and
ultimately delays the recovery of the housing market and the economy overall.

Illinois prohibits non-attorneys from taking up-front fees for loan modifications. I would imagine that we
attorneys are allowed to take up-front fees because we have the attorney disciplinary and registration
commission to deal with those attorneys that defraud their clients. You'd think that California has a similar
regulatory body . . . Ahmad Tayseer Sulaiman

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Posted In: Legislation , Mortgage Foreclosure Update , Opinion , loan modifications , loss mitigation
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