Legal Firms Join Hands in Firm Handshakes to Hackle the Foreclosure Crisis
Legal firms under the lead of United Law Group joined hands in firm handshakes with 30 other prominent legal companies to from Crisis Commission on Homeowner Representation.
United Law Group is one of the leading law firms with branches across the country – Arizona, California, Florida, Nevada, New York and Ohio. It has licensed attorneys to operate in any state. The group has won a name for itself in its dedication to use the legal tool to prevent foreclosures.
The primary objective of the group is to modify the language used in SB94. If it is not done then it will prevent troubled borrowers at risk of losing their homes from taking legal help. It would prevent lawyers from offering their services to bring about modification of loans and prevent foreclosures. As the bill now stands it will stop lawyers from taking a retainer upfront fees for services. This will be detrimental to borrowers.
Martin Andelman explained, “Essentially, it is a bill that will block a homeowner from obtaining legal representation when they are at risk of losing their home to foreclosure.” Robert Scurrah of CDA Law Center said, “SB94 is fundamentally defective. The concept of protecting a consumer will be totally eroded by the elimination of representation by licensed attorneys.”
The stand of the commission is that the fees that are being now charged by lawyers are negligible considering the time as well as effort put in. It requires expert knowledge to support the cause for modification of loan. For any other project the consumers in Orange County would have to dish out minimum $300 per hour to lawyers. Lawyers are engaged by real estate firms are paid anything from $1,500 to $3,000.
Zshonette Reed of Lorden & Reed said, “In a contingency case it’s worth the risk, because there’s a fee waiting for you at the other side. But attorneys cannot afford the overhead commitment for a $2,000-$3,000 fee.”
Summing up the impact that this bill will have on troubled house owners Robert Buscho of United Law Group said, “The consequence of this bill is that homeowners are not able to get representation because the attorneys cannot afford to become unsecured creditors to people who are already struggling financially.”
The supporters of the bill contend that it will prevent increasing number of foreclosure prevention scams that are mushrooming across the country. But Buscho claims that SB94 would harm the homeowners and not the scammers. He said, “Enforcing current laws will take care of the scammers. Enforcing current laws will take care of the scammers.”
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