Why Would You Call An Out of State Non-Law Firm Company For Legal Advice?

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“HomeSavers USA, Inc., is not a law firm. We do not give legal advice. These guidelines are not to be construed as legal advice or the practicing of law.”

This is what it says on homesaversusa.com’s site. I cannot tell you how many clients have come to me after consulting with and paying an out of state counseling service like this for help. Since these types of companies cannot file Chapter 13, cannot litigate in court, cannot find you a buyer, and cannot refinance your home – because they are not licensed attorneys, real estate brokers, mortgage brokers, or lenders – what the heck can they do?! Not much. They can only try to help you with a “workout.” However, without the ability to offer the homeowner any other options, this “solution” is not really very good. All leverage against the mortgatgee is lost – the homeowner has no fall back strategies and cannot realistically threaten to file bankruptcy or litigate. In my opinion, and this is only an opinion (protected by the First Amendment right of free speech), I think going to an out of state workout company is a waste of valuable time and money. Many, many clients have come to me with stories of fees paid and time lost with no results. I am not saying homesavers has done this but it is scary that they come up in the top 10 results on a google search of “mortgage forclosure.” To think that unsuspecting homeowners may call them for legal help.

In my view, what these types of companies do is the unauthorized practice of law. They purport to “represent” a client and negotiate and enter into a workout contract (possible loan modification) on behalf of the client. This is giving legal advice regardless of the tiny 6 point font disclaimer hidden at the bottom of a webpage. Last time I checked, this required 4 years of college, 3 years of law school, passing the bar, and gaining experience as a licensed attorney. How is it that homesavers or anyone else can try to do this in New York or anywhere for that matter? I wonder why the New York bar allows it.