Legal fees are pushing some people into foreclosure, according to a report in this morning’s Boston Globe. Many of the comments following the article on www.boston.com had a smidgen of indignation. Many people suggested that folks promptly call the lender if they see financial difficult coming down the road. Sage advice. However, many of my clients tell me that they did call the lender when they saw financial difficulty coming down the road and their lenders (or mortgage servicers) told them “sorry, we cannot help you until you’re actually late with a payment.” I’ve heard the same tale often – it’s no anomaly.

Imagine calling a dentist with a toothache and being told “sorry, we cannot help you until it starts to abscess and you’re walking around in excruciating pain.” Or imagine going to your mechanic and telling them that you hear a noise when the car goes over 30 MPH and being told 'why don’t you give us a call when you have smoke coming out from under the hood.'”

The Globe article shines light on the growing problem with foreclosures in Massachusetts. Homeowners are paying a heavy price for the hype fueled by the real estate market. The issues in this article are just the tip of the iceberg.