If you are a homeowner seeking modification of your mortgage loan, or facing foreclosure proceedings due to a loss of income or employment, here is what you need to know to get legitimate help and avoid being a victim of fraud.
Foreclosures
Only a licensed California attorney can represent you in court foreclosure proceedings. Ask for the attorney’s State Bar number and verify their status on the State Bar’s website.
Be wary of “foreclosure consultants.” Nonattorneys holding themselves out as providing these services cannot represent you in court proceedings.
Loan modifications
Attorneys are prohibited by law from collecting legal fees in advance to perform home mortgage loan modification services.
Nonattorneys cannot provide legal advice in rendering loan modification services.
If you think you may have been a victim of a loan modification scam, you should consult an attorney and report the activity to the State Bar.
Be wary of attorneys who approach you in person or by telephone to offer legal services, as direct solicitation is generally prohibited.
If you cannot afford a lawyer, you may be eligible for free or low-cost legal services. LawHelpCA can help you locate legal aid providers in your area who deal with your type of problem.
Before you hire a lawyer
If you are considering hiring an attorney, look up their profile on the State Bar website to confirm they are licensed. You can check for license status and whether they have a history of discipline.
Ask whether the attorney carries liability or malpractice insurance.
Ask prospective attorneys how they will respond to your needs and how quickly they return calls. You and your attorney should agree on how you will communicate.
Make sure you understand the fee agreement. Fees in advance for loan modification services are not allowed, and “monthly maintenance fees” are a red flag.
Ask for a copy of the retainer agreement. Verify that the services that you have hired them for are written clearly on the agreement. Loan modification services should be clearly described. If these services are presented using another name, such as civil litigation or bankruptcy services, this is a red flag.
This section of our website provides some tips on resolving problems with your attorney.
If you believe your attorney has acted unethically, please file an attorney misconduct complaint so the State Bar can look into it.
If you believe the person you have hired is not eligible to practice law or is not really an attorney, please file an unauthorized practice of law complaint so the State Bar can look into it.
