A few people have spoken to me about it. And I have had some time to reflect. My comments about David Coleman and his outfit, Mortgage finders of New England, were not kind. I believe I referred to him as “the lowest of the low.” In that article, I discussed what he did, and why the Bankruptcy Court fined him and issued an injunction against him. But courts issue fines every day and I don’t refer to the parties as the “lowest of the low.” So after some reflection, I thought it best to discuss why I stand by those statements.
Coleman – and others like him – scour public records to look for people in foreclosure. There is nothing wrong with that – provided you’re doing it for a good reason. There are some bankruptcy lawyers that do it, along with real estate brokers and others who offer their services to people who they think need it. But Coleman offers nothing.
Coleman leads his “clients” to believe that he is a lawyer and that he is capable of properly preparing a chapter 13 petition to stop a foreclosure. He then agrees to meet his “clients” at the courthouse – where the “clients” sign the petition and give him cash. Then, the petition is filed. The foreclosure is stopped….if only for the time being.
But Coleman does not counsel the “client.” He does not develop a strategy. He does not guide them through the rocky and ever changing legal terrain that is chapter 13. He does nothing more. The cases are dismissed, and the foreclosures in many cases, will likely occur. He has provided no benefit at all. He has done nothing other than take money and buy a small amount of time.
So why does this irk me?
Because people who are facing foreclosure need help. Because if their name is in the legal ad section of the newspaper and they have not already consulted with an attorney, or developed some sort of game plan, we can and should assume that either there is no game plan to put together, or maybe more likely the case, they are so scared and embarrassed at the very idea of losing their home, that it seems more appropriate to do nothing, since doing something is an acknowledgment that something is terribly, terribly wrong. In other words and perhaps more simply stated: they are vulnerable.
And Coleman takes advantage of it. He files the case. It gets docketd. It will get assigned to a judge and a trustee. Clerks will review it. Orders to Update will issue, directly the debtor to file other required documents. Those documents will likely never be filed. The case will be dismissed perhaps within a few days, or a few weeks or a few months. The foreclosure was stopped. It was stalled.
What also bothers me is that Coleman ignored court orders directing him to comply with those Bankruptcy Code provisions that require him, as a “petition preparer” to disclose his status (as well as for him to do other things that petition preparers are required to do). From all of this, I infer that Mr. Coleman and his outfit have no problem offering “help” to people, but ultimately providing none – and doing so only after taking their money. I also infer that Mr. Coleman doesn’t care what the law says or has any respect for our courts.
I am in the business of helping people. Debtor or creditor, that’s what I do. Bankruptcy law is tough enough on debtors. Being in deep in debt and feeling utterly powerless and alone is hard enough. But being preyed upon by someone who knows nothing, who offers nothing, and who takes everything is simply unconscionable. And it is for those reasons that I believe that my comments about David Coleman, Mortgage Finders of New England, and every other low-life who thinks they can get away with it, are entirely jusitified.
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