My husband & I had our loan modified where the interest was lowered for 5 years with a balloon payment due later in the loan. All interest & late charges were tacked on the back of the mortgage leaving us upside down. Our 2nd mtg was apparently sold to a collection agency and we haven't made payments for over 2 years. Now we're considering a real estate defense atty who reviewed our loan docs and advised that we may be in a predatory lending situation and can file a motion with the bank to cease and desist so that they can possibly get the principal reduced to current market value. Meanwhile, we're to stop making our monthly payments to the bank & pay the atty approx 1/3 of our current payment amount until the case is resolved. Is this legitimate and how successful is this process?
Without knowing all the details it is difficult to say for certain, however what you recount above leaves me with a bad feeling for a variety of reasons. I would advise you to at minimum get a second opinion. If there was a loan modification done, odds are great that any such defects were waived and extinguished by the modification. If your first mortgage is successfully resolved, I would be very reluctant to disturb it, and I AM a foreclosure defense attorney.
I am constantly frustrated in Florida these days by many professionals who are dabbling in this area of law yet do not really understand it. It is a very complex and very difficult to practice properly, so much so that I have a number of foreclosure defense clients who are themselves attorneys, yet who realize that they need real expertise, and would not dare to wade into the case and make a mess.
My contact information is on our web site, www.golantlaw.com - I know several excellent foreclosure defense attorneys in Jacksonville. In addition, there may be another way to resolve the second mortgage and lien, depending on the details. I will be happy to explain if you give me a call.