ANALYSIS, COMMENTS, THOUGHTS, AND OTHER OBSERVATIONS IN DR. SKOSPLES' NATIONAL INCOME AND BUSINESS CYCLES COURSE AT OHIO WESLEYAN UNIVERSITY
Sunday, November 7, 2010
Foreclosure Lawyers Put Second Mortgage on Client's Homes
In order to fight foreclosures that have stemmed from not being able to pay their mortgages, many people have had to resort to hiring foreclosure lawyers who cost so much that the clients are being forced to take out second mortgages just to pay the lawyers. However, this new mortgage only goes into effect if they do get the foreclosure dismissed and the debt to the bank lowered. While this is a good strategy for the lawyer to get paid, it doesn't necessarily help out the clients a ton. It reduces the first debt to the bank and lifts the foreclosure, but it creates a new debt and the client will have to pay back a second mortgage too. This is negative because being in foreclosure means you're most likely broke.
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