Many homeowners who are facing foreclosure are turning to attorneys to help them save their homes, especially in light of the recent revelations regarding mishandled paperwork.  With few other options available, the struggling homeowners hope that an attorney will find a flaw or legal loophole that will cause the foreclosure to be dismissed.  The problem is that most of these homeowners have no way to pay the legal fees.

But one enterprising law firm in Florida came up with a solution:  If they manage to get a foreclosure dismissed, the firm takes out a second mortgage on the property to pay the legal fees!  The Ticktin Law Group in Deerfield Beach reasoned that this was a way they could find an affordable way to represent homeowners.  Other firms are now following their example with similar second mortgage programs.

OK, call me crazy, but how does this make sense?  A homeowner that presumably owes more than the house is worth and has a first mortgage they already can’t afford, now takes on additional debt in the form a second mortgage?  The lawyers point out that they are charging low interest, around 4.0%, and insist that they would never foreclose.  So, the home is saved, for the moment, but how is this a sustainable solution? Sorry, but this defies logic and seems downright predatory.  I’ll be stunned if these poor homeowners aren’t back in foreclosure a year from now.

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