I received a copy of the following letter from my Broker/Partner written in his lawyer mode to the Michigan Attorney General. It points out that some people could be in a position of being given the wrong or misleading information by the law firms and lenders who are in the process of foreclosing on someone's home. Because we as Realtors are in a situation of being asked questions concerning the process, it is important we encourage clients and potential clients to understand their rights and to contact an attorney to make sure.

Below is a copy of the letter and a few more comments from myself to follow:


March 24, 2008

Hon. Michael A. Cox
Attorney General
P.O. Box 30212
Lansing, Michigan 48909

Re: Unnecessary Mortgage Foreclosures

Mr. Attorney General:

I am writing to bring to your attention a single incident which I fear may be being multiplied throughout Michigan. This is a situation that is likely causing many foreclosures which need not have occurred. This involves nothing inherent to subprime loans, loan avoidance by individuals who got themselves into bad loans because they mismanaged their finances or greedy mortgage brokers looking to make a fast buck with an unsuspecting consumer. The fact my experience relates to none of the more common maladies facing the real estate economy is what makes this an even greater concern to me as an attorney and as the principal Associate Broker for JTC Realty Group, LLC.

This incident resulted from a clients’ call related to the fact they had gotten behind on their mortgage as a result of circumstances they could not control. This was late on a Friday with the Sheriff’s Sale scheduled for the following Wednesday. Unlike many, they were not looking for a way to delay the sale. They had managed to obtain funds they believed sufficient to bring the mortgage current, including late fees, attorney fees, and additional costs incurred as a result of the foreclosure process. The problem they faced was trying to get the exact amount due.

My clients had contacted their lender for the figure only to be told they had to contact the law firm handling the foreclosure. Fair enough. They then contacted the law firm. I will not name the parties involved as, again, I do not believe this to be an isolated incident within the industry. Suffice it to say both the lender and the law firm are well known and prominent in the industry.

Upon discussing their dilemma with an individual, not an attorney, in the firm’s mortgage department, they were advised that it would take seven to ten days to get the exact figure. Obviously, with the Sheriff’s Sale looming, this presented a problem. I advised them to call the firm again on Monday as I was sure they had just gotten the wrong person with incorrect information or someone who clearly did not understand the issue being presented. Unfortunately, Monday brought the same answer.

Hon. Michael A. Cox
Attorney General
March 27, 2008
Page Two

I then contacted the firm and was placed with their mortgage department. I identified myself as an attorney. Again, this was not an attorney I was speaking with. I was advised, as had been my clients, that there was nothing they could do as my clients had waited too long to make the request. When I requested the opportunity to speak with the attorney handling the file, I was advised that she would only tell me the same thing. I asked to speak with her anyway.

I was connected with an attorney who was most pleasant and sympathetic to my clients’ plight. Sympathy aside, she, no doubt following the company line, proceeded to tell me the same story about the time it would take to get the information and that the Sheriff’s Sale would proceed as scheduled. She commented how they received requests to delay the sale all the time and they could not accommodate them. I reminded her I had not called to request a delay, I had called to get a number.

I will not bore you with the next five minutes spent with a logical progression of the steps involved, my clients’ rights and her client’s legal obligations. I did ask if she understood the insanity of my clients having to pay me money better spent on their mortgage to file litigation and request a TRO to stop the sale. To her credit, she did agree I would have little trouble getting such an order signed. Finally, she indicated she would contact her client and call me back. When we spoke the following morning, she indicated her client would delay the sale and provide my client with the appropriate figure.

While this resulted in a single happy ending, I am most concerned about the people who, upon being told they had waited too long to request a “bring current” number, gave up, resigned to the fact they were now going to lose their home. I suspect this represents a group large enough to be of a concern. This also represents an inexcusable breach of the public’s rights.

Should you or your office desire to discuss my concerns further, I would be most happy to do so.

Very truly yours,

JEFFERY L. FANTO
ery@prodigy.net
JLF/j


It's amazing how the lender and the law firm appear to feel it is okay to treat people in this fashion. How many Sellers have ended up just walking away after being turned away when trying to obtain information and couldn't? We all know in representing these sales what we go through to try and get a hold of the correct person who can give us the answers. It's next to impossible some times. We may as well talk to a wall. We as REALTORS are entrusted to help people that are facing a short sale or worse a foreclosure. Most of these folks don't know where to turn and look to us as experts in the field. We have some pretty large shoes to fill and definately need to ensure that our clients legal rights are not being violated in the process. While we are not are not qualified to give legal advice to our clients we should be able to identify when their rights are being violated. If something doesn't seem right.....it most likely isn't. Please, help your clients find proper legal representation.

David Keith
JTC Realty Group LLC
Livonia, MI