News & Events
Foreclosures - Strict rules for lawyers
By: Billy Shields, March 25, 2009
With the proliferation of companies hawking foreclosure relief and offering an elixir for what ails hundreds of thousands of homeowners across the country, it’s impossible to tell from slick advertising if their services are legal in Florida or if they comply with Florida Bar rules. But the Bar wants to ensure that Florida attorneys know their limits on foreclosure assistance.
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Kendall Coffey, a name partner with Coffey Burlington in Miami, a former U.S. attorney and author of the legal textbook “Foreclosures in Florida,” said the homeowners are hoping for government relief, but the programs rolled out to date may be a selling point for fraudsters because the federal efforts are poorly understood.
“A lot of times folks get hurt because some of these alleged workout specialists take some money up front, and the homeowner never hears from them again,” he said. “Homeowners who are already struggling financially are being induced to part with moneys they can ill afford to lose. The alleged rescue is a sham.”
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Florida Bar Ethics Alert
The alert reminds lawyers of the ethics rules for partnerships with nonlawyers after a surge in complaints against foreclosure rescue groups. Attorneys cannot:
- Pay a referral fee to nonlawyers
- Divide fees with nonlawyers
- Provide legal services to distressed homeowners while acting as in-house counsel for foreclosure relief companies.