A member of an Internet based discussion forum focused on real estate and financial matters recently asked the question, “Is mortgage litigation a scam?” The fact that someone would ask this question only shows that there are some people out there who may be avoiding a very handy tool for avoiding foreclosure out of fear of being taken for a ride by scammers.
The short answer is no, mortgage litigation is not a scam. Mortgage litigation is simply the intervention of the court to settle a dispute between a lender and a borrower. When a dispute is taken before a court, the outcome, if in favor for the borrower, can help the borrower keep their home.
While mortgage litigation is not a scam, there are plenty of scammers who use the words “mortgage litigation” to draw individuals into their scam. Some examples of this are individuals posing as non-attorney mortgage litigation consultants or mortgage litigation referral companies. A consultant is not an attorney and therefore will not be able to represent the borrower during the most crucial part of the entire process, at the trial. A referral company is a company established to take a borrower’s money just so they can match the borrower with an attorney. This service is nothing more than a middle man service that is not necessary and not advised. A borrower is better off researching local attorneys and interviewing references…this process can often be done in a few hours and costs nothing for the borrower. A borrower facing foreclosure should be wise with their money and should not waste money on services that they are perfectly capable of performing on their own.
Some mortgage litigation scams claim that a borrower needs nothing more than an e-book or online class to successfully handle their mortgage litigation. This is another example of a middle man service. Everything that a borrower wants to know about mortgage litigation is already available online or through a free consultation with a practicing attorney. Paying a service for information that another service offers for free is like burning money. As for claims that a borrower can represent themselves through mortgage litigation, that is all true, the law allows individuals to represent themselves in court. This is where the old phrase “A man who is his own lawyer has a fool for a client” comes into play. Any person who thinks that an e-book or online course will give them all of the information they need to successfully handle the details of the mortgage litigation should think again. Keep in mind the lenders in mortgage litigation cases have invested thousands, and sometimes millions, of dollars into their legal staff to ensure they are as knowledgeable and experienced as possible. The amount of money invested in the legal staff of a lender is no match for a mortgage litigation correspondence course or a mortgage litigation e-book. In the text above it is explained that a person should not waste money on something they can do for themselves, which is true, but does not apply to acting as one’s own lawyer. For the purpose of getting the best representation possible, hire a licensed and experienced professional.