Lawyers Not Stepping Up to Represent Foreclosed Borrowers, Given Steep Learning Curve for Foreclosure Law and Perceptions of Low Likelihood of Success; In Milwaukee, 90% of Borrowers in Foreclosure Proceed Pro Se
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Author: Jane Pribek
Source: “Foreclosure Attorneys Deal with Surge in Work,” Wisconsin Law Journal
Date: February 22, 2010
The Wisconsin Law Journal reports: “Not too surprisingly, the down economy has meant an upward swing in business for attorneys who concentrate in foreclosure. RealtyTrac reported earlier this month that foreclosure filings were pending on 3,710 Wisconsin homes in January 2010. A year ago, that number was 2,699. . . . On the [borrowers’] side, Michael P. Maxwell, of Maxwell Attorneys LLC in Wauwatosa, estimates he used to counsel somewhere between three to five borrowers/clients per month about foreclosure-related issues. Now it’s about three to five people per day. Yet on the borrowers’ side, despite the obvious need for lawyers, few have responded, says Milwaukee attorney Edward W. Harness, of Harness Law Offices LLC. He notes the Legal Aid Society recently sponsored CLEs to bring attorneys up-to-speed on foreclosure law, but while many attended, few are actually representing homeowners in need. A February 2009 report from the Milwaukee Foreclosure Partnership Initiative concluded that some 90 percent of borrowers in foreclosure are pro se. Maxwell and Harness say there’s a popular perception that representing borrowers is a losing proposition. But it’s also a complicated mix of state and federal law — no one dabbles in foreclosure. In addition, having a critical mass of cases is the only way to make the practice financially viable, says Blommer. On the creditors’ side, lenders pay according to fee schedules that are uniform across the nation, and emphasize efficiency. It doesn’t make sense from an economic perspective to tackle the learning curve unless you have a volume of prospective clients and cases. On the borrowers’ side, these cases can be hard to win.
‘It’s an uphill battle because most people who are behind on their mortgages don’t think lawyers can help,’ says Harness. ‘It’s hard to get people to talk to them about what their options are. They’ll just give up.’”