Legal Question in Real Estate Law in California

Re: Ethics Loan Modification In House Position

Without details of exactly what you did, I'd say probably this would amount to providing legal services, but whether this also violated the ethics rules is a separate issue. Obviously, providing legal services does not always equate to an ethical violation.

Sounds like you work for a loan-renegotiation service. There is a lot of criticism of the way they operate, and close scrutiny will follow. There is certainly a role for such services, and for in-house counsel within them, but I would advise any lawyer who becomes involved in any way with multiple, mass, or cookie-cutter handling of foreclosures, either as house counsel or as an independent practitioner, to be extremely aware of the ethical rules, the B&P Code requirements, and the possibility of malpractice.

Re: Ethics Loan Modification In House Position

Without details of exactly what you did, I'd say probably this would amount to providing legal services, but whether this also violated the ethics rules is a separate issue. Obviously, providing legal services does not always equate to an ethical violation.

Sounds like you work for a loan-renegotiation service. There is a lot of criticism of the way they operate, and close scrutiny will follow. There is certainly a role for such services, and for in-house counsel within them, but I would advise any lawyer who becomes involved in any way with multiple, mass, or cookie-cutter handling of foreclosures, either as house counsel or as an independent practitioner, to be extremely aware of the ethical rules, the B&P Code requirements, and the possibility of malpractice.

Re: Ethics Loan Modification In House Position

Go to the State Bar's website and look at the Ethics Alert issued in February about attorneys using or loaning their licenses to loan modification companies. Most Loan Modification companies associate with attorneys solely to get around the stricture of the rules imposed on Foreclosure Consultants. The State Bar came down pretty heavy against any attorney working with a company engaged in loan modification, unless the attorney is actually working for the client as counsel. I'd have to agree with attorney Whipple that based upon what you have posted, you are potentially at risk. You can also call the State Bar Ethics hotline to discuss this - I believe you can do so anonymously.

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