You are a homeowner in financial distress. Likely you are showing up on the radar screen because you are delinquent. Maybe you are in foreclosure and getting lots of attorney "hire me!" letters. You are looking for solutions.
Comes along an advertisement, probably a mailer but maybe a telephone call, telling you there is a nationwide lawsuit being filed against your lender for errors in the loan origination, or in the servicing, or in the foreclosure documentation. They promise that "if you qualify, after a review by our attorneys," you can join the class action. The next day, after your information has been "reviewed" you get a telephone call telling you that the attorney review determined that you are in fact qualified to be accepted into the litigation!
The promise from being in the litigation is a fast settlement with your lender for a reduction of principal, drastic reduction in payments, even elimination of the mortgage. Just sign up with the legal document we are sending you along with a one time retainer fee of $5,000 to $10,000!
Thousands of people have fallen for this scam - usually run by attorneys or having attorneys associated with it. The most recently reported one was reported in the newspapers in the past week, and more state attorney generals are jumping on the bandwagon regarding these firms and suing them, shutting them down and putting them into receivership,
The papers have talked about a law firm in California doing this, but I have had homeowners come to see me about these in Texas as well. These firms advertise and market nationwide.
The problem with the "mass tort" concept is that no attorney usually reviews the material and the real qualification of whether you can or cannot be in the "class" is whether you have the retainer fee. In addition, this mass tort concept is not a substitute for a foreclosure defense to an already filed foreclosure lawsuit against a homeowner.
Homeowners - and their real estate agents - need to be on guard against deals that promise results. Class actions almost never have a retainer fee involved for being part of the "class". Further, the laws regarding mortgages, although mostly governed by Federal law that pre-empts state law on the matter, still have local laws that may have a material effect on the management of a case. Why would a California law firm be best to handle your Florida foreclosure?
Be alert and rely on trusted advisors for yourself and for your clients.
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Copyright 2011 by Richard P. Zaretsky, Esq.
Be sure to contact your own attorney for your 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. Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660 RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide! Shortsales@Florida-Counsel.com New Website www.Florida-Counsel.com
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