How current events impact your business and real estate holdings

Monday, July 26, 2010

Mortgage relief service scam - Short Sales Need Attorneys

The FTC has banned 8 firms from selling mortgage relief services. To read the article click here. I was very glad to see the government cracking down on what is an ever growing problem in the foreclosure defense profession.

Just today I had a conversation with agents of a real estate company who insisted on using one of these types of services in their short sale negotiations. They told me the only way I could have the deal was if I agreed to using these services. My answer was simple - NO!

Thereafter, I explained that neither my firm nor their real estate office should be deciding who the client uses to negotiate their short sale. I stated that they had it all backwards in making this choice because it was not their choice or my choice to make, but instead the clients choice. Moreover, I stated that my firm will not close on a deal where a third-party, non-attorney, negotiated the settlement because we believe that such practice constitutes the unauthorized practice of law in the State of New York. Furthermore, these companies only care about closing and not properly advising clients on minimizing their exposure to liability. Consequently, my position is that the job of the real estate agent was to inform the client of the need to obtain a competent attorney, nothing more and nothing less, and the attorney's job was to advise the client's options and facilitate their goals, nothing more and nothing less.

That is how we practice at Lieb at Law, P.C.

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