Lawyers taking advantage of foreclosure mess

Attorneys are getting into mortgage modification schemes in unprecedented numbers says the Los Angeles Times.

Lawyers are telling their clients they can help them modify their mortgages and charge them thousands of dollars without being much help in many cases.

The California state bar has been deluged with complaints.

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The estimated tens of thousands who lost nonrefundable deposits to unscrupulous lawyers advertising their loan-modification services could have benefited from the knowledge that those attorneys were, for the most part, uninsured, Miller said.

California Atty. Gen. Jerry Brown has taken up the cause of defrauded homeowners, partnering with the bar and the California Department of Real Estate to require that mortgage foreclosure consultants register with his office and post $100,000 bond.