Sunday, November 7, 2010

Foreclosure Lawyers Put Second Mortgages on Clients' Homes -

Foreclosure Lawyers Put Second Mortgages on Clients' Homes - "For some Florida residents, the price of getting out of foreclosure will include taking on a second mortgage — payable this time to their lawyers.

“We’re not money lenders,” said Peter Ticktin, a foreclosure lawyer who devised a “pay later” plan for troubled homeowners.
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Jason Henry
Thomas Ice and other foreclosure lawyers in Florida typically receive a few hundred dollars a month from each client.
The new mortgage, which takes effect only if the foreclosure is dismissed and the homeowner’s debt to the bank is reduced, is controversial among defense lawyers, some of whom call it “creepy” and “crass.” Yet even they acknowledge it offers a solution to a vexing question: How do they get paid?

After recent revelations that banks were sloppy in processing many foreclosures and in some cases lack standing to seize a house, potential clients seeking to challenge their lenders are flocking to lawyers. But while these distressed homeowners might have a case, they generally lack the resources to pay legal fees. Being in foreclosure usually means being broke."

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