Legal Question in Bankruptcy in Ohio
I filed Chapter 13 because my house went into foreclosure. In September my lawyer told me that I had at least 2 months to move out. I moved out in Oct. 2008. In November 2008 I received a Certificate of Satisfaction, stating that the mortgage was cancelled and discharged. I've been trying to contact my lawyer to find out what this mean. My lawyer failed to respond to all my calls. In November 2009, another lawyer with same law firm informed me that my lawyer was no longer there. She told me that the Certificate of Satisfaction means that the house is mine free and clear. I do not understand how is this so. I went back to the property and someone broke in and took all the copper plumbing and the copper from the electrical wires. I informed the lawyer of this and she told me to sell the house on www.uglyhouses.com. I feel that I was misrepresent, because I think that I did not have to move out of the house. I asked why did my lawyer tell me to move out, she stated that it was potocol. I asked why was it not in writing. My question is can I sue this law firm?
1 Answer from Attorneys
Perhaps. But it is quite expensive. These cases are not customarily taken on contingency and thus you'll have to come up with a sizeable retainer. For example, we will not get started on a legal malpractice case without a retainer of $5,000. Of course, you may be able to recover your legal fees in the case, but you would have to prevail in order to do so. In the meantime, you'd be responsible for your monthly litigation bills. And I suspect that this is not possible since you are in bankruptcy.
But let me suggest that your lawyer may not be to blame for what happened in your case. You see, lenders have been foreclosing on quite a few properties that they have no intention of purchasing at the foreclosure sale. The reason usually is that the value of the property is insufficient to justify the transaction costs involved in acquiring it, maintaining it and selling it. In some cases, the property is in such bad shape that demolition is inevitable, making it extremely unattractive to acquire. When the lender decides it's not worth it, they just walk away and the person on the deed is left with the property. This appears to be what happened to you. And I'm not sure an attorney can predict with any confidence when the lender will make this kind of decision.
I would suggest that you contact your congressperson to insist on a law that requires lenders to acquire the property upon foreclosure. Then, the property won't be trashed and landowners won't be left holding the bag.
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