Welcome to The Home Equity Theft Reporter, a blog dedicated to informing the consumer public and the legal profession about Home Equity Theft issues. This blog will consist of information describing the various forms of Home Equity Theft and links to news reports & other informational sources from throughout the country about the victims of Home Equity Theft and what government authorities and others are doing about it.
Thursday, July 11, 2013
Lawyer's Direct Mail Solicitations Intended For Homeowners In Foreclosure Mistakenly Sent To Those With Either On-Time Or Paid-Off Mortgages Instead, Leaving Hundreds Of Recipients Freaked Out
The Oregonian reports:
The letter began with a bang.
"Dear Friend, I am writing because I saw your residence on a list of house (sic) in danger of being foreclosed and lost by their owners."
Sue Bernert's 84-year-old father read it and, understandably, freaked out. Though the retired lawyer had paid off his home two decades ago, he worried that something had gone terribly wrong or that his identity had been stolen.
"That letter made him confused and anxious," Bernert said. "That's a crummy way to solicit business."
Kelly Kennedy Brown, a bankruptcy lawyer from Southwest Portland, sent the letters in late June. Well actually, as he explained on his website soon after, he hadn't meant to send them – at least not to the 16,711 local consumers who received them.
Brown, a member of the Oregon State Bar since 1983 who's never faced disciplinary action, told The Desk he bought a list of addresses from a direct-mail company based in Florida.
The list was supposed to be made up of folks who'd fallen behind on their house payments or were in foreclosure. Instead, he said, he received a list of consumers, who like Bernert's father, had no mortgage at all or were current on their payments.
"My main concern is the unnecessary distress the mailing caused to a large number of its unintended recipients," Brown wrote on his website. "I do not know how to fix that, other than to post this note of apology."
The Desk has an idea: Mail another letter explaining the mistake.
Bernert said her father doesn't use a computer and wouldn't have seen the digital mea culpa. Still, even PC access is no guarantee anyone would have gone looking for it.
Brown said he tried to stop the mailing as the first upset calls began trickling in, but the mailing company said it couldn't. He's distressed and frustrated by the mistake but says he can't afford the $7,700 in postage to send new letters explaining the mistake.
Perhaps that wouldn't help, anyway. Even after Bernert explained the mistake, she said. her father was still so concerned that he asked her to check his credit to be sure his identity was safe.
***
He's heard from 476 upset recipients since the letter went out June 21. The Oregon Department of Justice heard from consumers, too, as did the Oregon State Bar, which dismissed the few complaints it received because there appeared to be no rule violations, said Kateri Walsh, the group's spokeswoman.
The state bar sets advertising guidelines for members, which includes wording that they shouldn't make statements that are false and misleading.
Still, The Desk contends, when someone works off a list with more than 16,000 names, there's bound to be errors -- be it outdated information or a simple goof. So it's important not to scare the wits out of the recipient.
Brown said that he's written around six such letters each week to folks whose names he received from title companies and he's never received a complaint. He admits that, in hindsight, he should have toned down the wording of the letter when he aimed for a broader audience.
The Desk appreciates Brown's honesty. Mistakes do happen.
However, when Brown purchased the list for around $13,000, he was told that as much as 20 percent of it could be inaccurate.
Put another way, he knew when the letters went out that as many as 3,200 folks could open an envelope, see that line and worry that it was a mistake.
CBC News: Betrayal of Trust (A CBC investigation reveals how lawyers across Canada have misappropriated and mishandled clients money, to the tune of tens of millions of dollars, or sometimes even charging vulnerable people top dollar for shoddy services)
Land Contract/Contract For Deed/Rent-To-Own Rackets
The New York Times: The Housing Trap (In the wake of the housing crisis, low-income families have turned to seller financing to buy homes but these deals can be a money trap)
Beware The Fine Print: Consumers Forced To Sign Away Their Rights To Use Court System
The NY Times: Arbitration Everywhere, Stacking the Deck of Justice(Part 1 in series examining how clauses buried in tens of millions of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court)
Foreclosure Mills' Abysmal Record In Complying With New NYS Foreclosure Requirements
Justice Deceived: How Large Foreclosure Firms Subvert State Regulations Protecting Homeowners
MFY Legal Services Report On Questionable Practices By Process Servers In Debt Collection Cases
Justice Disserved: A Preliminary Analysis of the Exceptionally
Low Appearance Rate by Defendants in Lawsuits Filed in the Civil Court of the City of New York
Mortgage Mess Redux: Robo-Signers Return (A Reuters investigation finds that many banks are still employing the controversial foreclosure practices that sparked a major outcry last year)
CNN Video: As Foreclosures Mount, Florida Court Turns To 'Rocket Docket'
The Wall Street Journal: A Florida Court's 'Rocket Docket' Blasts Through Foreclosure Cases (2 Questions, 15 Seconds, 45 Days to Get Out; 'What's to Talk About?' Says a Judge)
"Produce The Note" Strategy When Dealing With Missing Promissory Notes In Foreclosure Actions
ABC Video: Fighting Against Foreclosure (Some homeowners have found a new tactic to keep the banks at bay)
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