Dead giveaways of foreclosure charlatans
Posted: Sun Jan 25, 2015 11:57 pm
If you are going through a foreclosure, there are certain warning signs that you are dealing with someone that is selling a service that is less than legit. Sometimes, not so legit methods can delay the inevitable, for a short time, but often they expose the borrower to criminal liability and also can cost many thousands of dollars in the long run. But, based on what I've seen, I would say the following are red flags to look for.
This is not intended as legal advice for any particular person's case, but are some general thoughts, not aimed at any firm or group or person.
1. It isn't a law firm - If you want to stop a leak, you hire a plumber. If you want to catch a mouse, you buy a cat. If you want your taxes done, you don't hire a carpenter. This seems plain enough, but for some reason, probably cost, people are continually suckered into hiring non lawyers to help them save their home.
2. It only half commits to being a law firm - A real law firm is a business that is composed of lawyers, people who historically practice law for a living. If they are new admittees, or even worse, a bunch of non lawyers who sell you on the idea that they have "lawyers on call" or a "staff lawyer" or "share office space with lawyers" then there is a serious problem. It means you are hiring a non lawyer and have no guarantee that legal knowledge will be applied to your situation or problem. See #1, above.
3. It is a law firm that won't use the names of its members - while it is pretty common to have businesses function with fictitious names, lawyers generally do not. For some reason an untold number of quasi-law firms and questionable loan mod firms have names that elicit an appeal to patriotism or something generic sounding (_____ law group). There is nothing illegal about it, but ultimately, you are hiring a professional, not a faceless "law group". Why is it that they are hiding their name? High turnover?
4. It doesn't follow state laws about its business - In many states a lawyer can't charge an advance fee for a loan modification. If it is doing that, then the firm is suspect. Part of being an attorney is having some respect for the law. If you hired a firm that doesn't have that and risks its license, what does that tell you about how well it will protect you?
5. Strange legal theories only they know how to use - If you are dealing with someone who is purports to be the only person or firm or "group" that knows how to accomplish something, beware. I would personally run at that mere suggestion.
6. Silly UCC games and sovereign citizen talk - If they want to play word games about whether or not you are a person, run. If they want to get into UCC theories, especially if they are not a lawyer, run. While there is some minimal application of UCC article 3 to mortgages in some situations, or UCC article 9 in others, it is not something that can be universally used to solve the mortgage problems of everyone.
7. Adverse Possession talk - If the firm you hire says you have been adversely possessing your own home, hopefully you already know they are all wet. But if you don't know that, they are. Run.
8. Wants to sue the lawyers at the foreclosure firm - Suing a low level associate at a foreclosure law firm is a joke of a method that I've seen tried many a time. It doesn't work. Unless there is truly something fraudulent going on which they have evidence of involving the lawyer, and that is something extremely rare.
9. Filing questionable documents at recorders office - If the scheme involves filing documents that aren't legitimate at a recorders office, then run. For example, claiming that you are your own creditor, or documenting fake transfers, etc. Just because the recorder accepts the document doesn't mean their scheme is valid; it just means they have filed a false document which must be expunged.
10. Murky backgrounds of participants - If one cannot readily tell why someone is credentialed to give legal advice on foreclosure law, then they probably aren't. If their website is just full of emotional appeals to their faith in God, love of family, and hatred of the banks, but no real reason to hire them, then run.
11. Appeals to faith/ affinity - Overemphasis on "belief in God". You don't require this of your plumber, do you? It fails to address real qualifications and is problematic for that reason.
12. Abuses the term "common law" - the world of pseudo law has thoroughly abused this simple term which just means "case law" if you went to law school. To them it means some kind of alternate legal universe where they can invent their own procedures and don't have to follow codes and statutes. That isn't common law, it is pseudo law.
This is not intended as legal advice for any particular person's case, but are some general thoughts, not aimed at any firm or group or person.
1. It isn't a law firm - If you want to stop a leak, you hire a plumber. If you want to catch a mouse, you buy a cat. If you want your taxes done, you don't hire a carpenter. This seems plain enough, but for some reason, probably cost, people are continually suckered into hiring non lawyers to help them save their home.
2. It only half commits to being a law firm - A real law firm is a business that is composed of lawyers, people who historically practice law for a living. If they are new admittees, or even worse, a bunch of non lawyers who sell you on the idea that they have "lawyers on call" or a "staff lawyer" or "share office space with lawyers" then there is a serious problem. It means you are hiring a non lawyer and have no guarantee that legal knowledge will be applied to your situation or problem. See #1, above.
3. It is a law firm that won't use the names of its members - while it is pretty common to have businesses function with fictitious names, lawyers generally do not. For some reason an untold number of quasi-law firms and questionable loan mod firms have names that elicit an appeal to patriotism or something generic sounding (_____ law group). There is nothing illegal about it, but ultimately, you are hiring a professional, not a faceless "law group". Why is it that they are hiding their name? High turnover?
4. It doesn't follow state laws about its business - In many states a lawyer can't charge an advance fee for a loan modification. If it is doing that, then the firm is suspect. Part of being an attorney is having some respect for the law. If you hired a firm that doesn't have that and risks its license, what does that tell you about how well it will protect you?
5. Strange legal theories only they know how to use - If you are dealing with someone who is purports to be the only person or firm or "group" that knows how to accomplish something, beware. I would personally run at that mere suggestion.
6. Silly UCC games and sovereign citizen talk - If they want to play word games about whether or not you are a person, run. If they want to get into UCC theories, especially if they are not a lawyer, run. While there is some minimal application of UCC article 3 to mortgages in some situations, or UCC article 9 in others, it is not something that can be universally used to solve the mortgage problems of everyone.
7. Adverse Possession talk - If the firm you hire says you have been adversely possessing your own home, hopefully you already know they are all wet. But if you don't know that, they are. Run.
8. Wants to sue the lawyers at the foreclosure firm - Suing a low level associate at a foreclosure law firm is a joke of a method that I've seen tried many a time. It doesn't work. Unless there is truly something fraudulent going on which they have evidence of involving the lawyer, and that is something extremely rare.
9. Filing questionable documents at recorders office - If the scheme involves filing documents that aren't legitimate at a recorders office, then run. For example, claiming that you are your own creditor, or documenting fake transfers, etc. Just because the recorder accepts the document doesn't mean their scheme is valid; it just means they have filed a false document which must be expunged.
10. Murky backgrounds of participants - If one cannot readily tell why someone is credentialed to give legal advice on foreclosure law, then they probably aren't. If their website is just full of emotional appeals to their faith in God, love of family, and hatred of the banks, but no real reason to hire them, then run.
11. Appeals to faith/ affinity - Overemphasis on "belief in God". You don't require this of your plumber, do you? It fails to address real qualifications and is problematic for that reason.
12. Abuses the term "common law" - the world of pseudo law has thoroughly abused this simple term which just means "case law" if you went to law school. To them it means some kind of alternate legal universe where they can invent their own procedures and don't have to follow codes and statutes. That isn't common law, it is pseudo law.