“Foreclosure Lawyers Put Second Mortgages on Clients’ Homes”

by Walter Olson on November 9, 2010

That’s the way to help ‘em out!

While such an approach is sometimes used in commercial litigation, this is a first for consumer cases, said Lester Brickman, a professor at Cardozo Law School in New York.

“For a lawyer to supplement or replace the banks as a long-term mortgage creditor of homeowners leaves me a little queasy,” said Mr. Brickman, an expert on contingency fees. “It’s an invitation for the public to say, ‘There go the lawyers again.’ ”

OK, we’ll say it: There go the lawyers again. [New York Times via Ribstein/TotM and Knake/LEF]

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{ 4 comments }

1 E-Bell 11.09.10 at 11:22 am

“We would never enforce the mortgage and foreclose,” he said. “We’re not in that end of the game. We’re not money lenders. We’re charging a small amount of interest” — four percent — “just to make it legal.”

If you believe that, I’ve got a bridge to sell you.

2 John Burgess 11.09.10 at 12:32 pm

Forget the bridge… who has money for that? I’ve got a house to sell you.

3 k m 11.09.10 at 2:53 pm

er – depending on the state this may or not be legally enforecable as there are strict limits on who may “originate” a mortgage in many states. could be interesting class action potential….

4 robert 11.09.10 at 6:44 pm

Well, there is a problem. If you’re a lawyer representing a deadbeat, how do you get paid?

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