Lengthy Beach, Calif. (PRWEB) July 7, 2009
The lending business and loan servicing lobbyists have effectively pressured Governor Schwarzenegger to demand that language be integrated in SB 94 that would prohibit attorneys from accepting retainers for loan modification negotiations with their loan servicers. The language, if adopted, will stop homeowners from seeking legal representation to save their property from foreclosure.

According to Martin Andelman, of mandelmanmatters on ml-implode.com, “California homeowners are the ones losing right here … This is just the banking lobby influencing our government after once more.” Andelman has been an outspoken advocate for homeowner rights and writes a column for The Mortgage Lender Implode-o-meter and the Niche Report magazine.

The language proposed is as follows, according to Andelman

“five) Prohibits persons such as attorneys, until January 1, 2013, who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform a mortgage loan modification or other compensation paid by the borrower to do any of the following:

a) Claim, demand, charge, collect, or receive any compensation until soon after the licensee has fully performed every single and each and every service the licensee contracted to execute or represented that he/she would execute.”

The proposed language will properly cut-off property owners from legal representation, while banks and loan servicers have a battery of attorneys dictating policies that are in their interests and leaving property owners to fend for themselves. Attorneys who legitimately represent their client’s interests to achieve long-term modifications invest months of work, countless hours and delaying techniques by the loan servicers who only respond to the threat of litigation.

Alan Jablonski, a Extended Beach, CA primarily based customer rights attorney and author of ”Successfully Navigating the Mortgage Maze” stated, “the modifications that the loan servicers are offering property owners, if they will even talk with them, are brief term fixes that will leave the property owners facing foreclosure at a later date.”

The language may possibly also affect property owners who are seeking bankruptcy protection, because attorneys practicing in this location also operate to keep home owners in their properties. Most home owners want to keep in their houses, even if they owe a lot more than the residence is worth.

J. Arthur Roberts, a bankruptcy lawyer positioned in Newport Beach, CA stated, “this language is of wonderful concern, several property owners who contact our workplace are attempting to save their residences and we never know how this will have an effect on our practice, property owners want attorneys to look into violations of state and federal law, it depends upon how this law will be interpreted.”

Jablonski continued, “attorneys will not be in a position to support homeowners, because considerably of the time, if the attorney doesn’t get a retainer they have no way to be paid for their servicers, violations of the law will go unchallenged and these who could have remained in their houses will have no recourse.”

“No lawyer can guarantee an outcome, it is in our code of ethics and would irresponsible, but the only point this language will do is drive property owners to disreputable loan modification firms who will violate the law regardless of its passage,” Jablonski said.

In 2008, California passed new laws that required lenders to perform with home owners and many attorneys are utilizing these and other laws to fight for options to the foreclosure epidemic in the state. Several think the monetary industry is attempting to get rid of any possibility homeowners have of staying in their houses for the extended-term.

Alan Jablonski can be contacted and will be offered for appearances on brief deadlines at 562.235.5709. Martin Andelman and J. Arthur Roberts are accessible for appearances and additional comments.

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