avoiding foreclosure scams
How the MARS Rule Affects Attorneys
Lawyers sometimes provide help with loan modifications or other types of mortgage relief. Under the MARS Rule, attorneys are allowed to charge an upfront fee -- but only in which circumstances?
- If they put the money in a client trust account and only withdraw fees as they complete actual legal services
- If they work directly for the government or your lender
- If they use the money to fund nonprofit housing advocacy efforts
“A” is correct. Your lawyer must tell you any time money is withdrawn from the trust account. The attorney must also be licensed to practice in the state where you live or your home is situated, provide you with real legal services, and comply with state legal ethics requirements.