Ever wonder how these attorneys get paid? Typically, if the attorney is successful in winning for you, the homeowner, some sort of mortgage modification against the bank or mortgage holder then you will likely have to take out a new or second mortgage to be able to pay the 40% of the savings the attorney saved or won for you. For example, if your mortgage was $500,000 and the attorney got it reduced by the bank to $200,000 then you would owe the attorney 40% of $300,000 which is $120,000 minus any legal fees paid to your foreclosure attorney by the losing bank or mortgage holder as well as minus any legal fees you paid monthly to the prevent-a-foreclosure law firm.
This amount you owe the law firm can be paid over time but paid with interest too. As usual everyone gets paid when using these type services and, for many homeowners, the chance of being able to stay in their home makes it all well worth it.
However, if the attorney does not get paid all the attorney fees he charges you, the law firm has the legal right to put a lien on your home and the attorney will do this
if you, the homeowner, does not pay the law firm. As you know if you and the attorney cannot come to terms the attorney has the legal right to have you evicted from your home!
Instead of hiring an attorney to fight the bank you can possibly fight the bank on your own if you can handle all the stress and legalese. Too often the prevent-a-foreclosure attorneys may do little more than go to court and ask the judge to ask the bank to prove it holds the mortgage on your home which too often the bank cannot prove because your mortgage, like so many others, was bundled up and sold to investors all over the world years ago.
This makes it difficult for the bank to locate who holds your mortgage and if the bank cannot prove it owns or holds your mortgage then supposedly the bank cannot legally foreclose on your home and therefore, for now, seemingly the bank or mortgage holder cannot force you to move out until they can prove they own your mortgage. Be prepared for the bank and its collectors to make all kinds of threats in the interim but this is what the court judge is for if you choose to go to court without a foreclosure attorney to represent you.
SUPPLEMENTAL SOURCE: FIERCE FINANCE, THE FINANCIAL SERVICES DAILY MONITOR 11/8/10