Role Of Attorneys Representing Homeowners In Mandatory Foreclosure Mediations Questioned

In Las Vegas, Nevada, the Las Vegas Sun reports:

• The Nevada legal community is getting behind a new mediation program designed to reduce the state’s ongoing foreclosure problem, but some attorneys are facing criticism for trying to profit from it. [...] One legal advocate for the poor has criticized the program, sayings attorneys are preying on homeowners for a service they don’t need. Many attorneys, however, said it never hurts to have legal representation in the complicated process to keep a home.

• Michael Joe, an attorney and foreclosure specialist for the Legal Aid Center of Southern Nevada, said he has seen attorneys advertise their services for $1,500 to $3,500 to help homeowners in mediation. It’s piggybacking on attorneys’ ads to help homeowners modify loans, he said. Joe called it no different from an attorney waiting outside of a hospital for injured patients who are brought in by ambulance.

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• Robert Noggle, a real estate and business attorney with Black & LoBello, said attorneys have helped people stay in their homes by working with lenders and helping negotiate short sales. In mediation, attorneys may need to advise the homeowner on what is offered by lenders. Although attorneys aren’t necessary, not every homeowner who goes into mediation has the time or inclination to understand the rules, Noggle said.

For more, see Lawyers’ role in foreclosure mediations sparks debate (At issue: Are homeowners buying what they don’t need?).

In a related story, see License rules leave questions (Whether consultants can represent clients in mortgage mediation unclear).