Legal Counseling = The Only Viable Alternative To Foreclosure

Since the beginning of the foreclosure crisis in 2008, many distressed home owners came to realize how lenders held a higher hand over their housing certainties. Through a foreclosure action, lenders can evict owners out of their homes while forcing the same owners to still be liable for foreclosure fees. On the other hand, the majority of distressed homeowners lack access to basic social tools to better their chances, such as lobbying groups and major funders.

In a recent publication by Brennan Center for Justice, researchers – Melanca Clark and Maggie Barron – indicate the importance of having a lawyer represent homeowners in foreclosure procedures. They also note that by not seeking legal counseling, many distressed homeowners are losing out on a variety of legal solutions which can prolong their stay at their property, create a repayment plan or cure deficiency.

In addition, the researchers detail some of the basic barriers limiting distressed borrowers from seeking legal representation. Lawyers lack federal and state incentives to help distressed borrowers; rather, multiple levels of government had enacted laws to curb legal assistance – public and private – that distressed borrowers can seek. Federal government had sheltered and bailed out financial institutions while passing laws against lawyers’ fees. There are also abusive techniques used by lenders to discourage distressed homeowners from retaining a lawyer. Some of my clients experience similar situations when lenders refuse to cooperate with clients after they retain legal help. In concluding, the Brennan Center made a number of recommendations including removal of funding restrictions and recognizing the right to counsel in foreclosure cases.

Such findings echo patterns I came to witness during my work with distressed homeowners. Yes, lenders are constantly trying to discourage distressed homeowners from seeking legal advice. By their nature, lenders are financial institutions in pursuit of maximum profitability. Lenders hire researchers, social scientists and the top 10% of graduating legal class to ensure their profit margins. On the other hand, distressed homeowners can’t afford much – if anything – in their fight to keep their properties.

By retaining an attorney, distressed homeowners gain some equality forcing lenders to start negotiating. Government programs created the door for regaining normal ownership status, but lenders are refusing to give keys to needy borrowers. Independent legal counsel through licensed and trained attorneys will cut through lender’s red tape allowing distressed homeowners to pass through government opportunity door. And in accordance with findings of Brennan Center for Justice, legal counseling is the only viable alternative to foreclosure.