Florida Homeowners Take on Second Mortgages to Pay Legal Fees

By Kyle Chezum Updated on 11/8/2010

11/08/2010

Florida has seen more than its fair share of foreclosures during this downturn.  But in the wake of the highly publicized bank error cases, homeowners have begun to feel more and more suspicious about foreclosure filings and have taken on legal defense.  Lawyers aren't cheap, however, and most homeowners facing foreclosure don't have much cash on hand.  The result?  Some lawyers have devised payment plans that operate as second mortgages.

With these plans, homeowners pay back legal fees over the course of years with loans secured against their homes.  Reaction to this practice has been mixed.  Some lawyers feel that this new method of collecting legal fees will attract negative public attention.  Others see it as a way of helping homeowners, who still save significant money by keeping their homes and obtaining loan modifications.

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