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Customers whose cases were handled unethically do not comprehend how bad their situation actually is.
 
Even if they were to find out, they would be hard-pressed to challenge a lender without utilizing a legal expert
 
"Customers just don't comprehend what is going on," said Walter Hackett, a former banker who is now a professional counselor for a nonprofit service in Riverside.
 
He continues: "They get a receipt saying they are going to lose their homes and they freak out."
 
The problem for lawyers is that even a simple [http://www.stlouisrefinancinggroup.com/st-louis-mortgage-news/principal-loan-reduction-foreclosure-mess-may-get-worse loan reduction], in which the loan is restructured so the customer can afford the monthly payments, is a timely marathon, putting off their payday for months if not years.
 
If the bank refuses to come to terms, the purchaser may have to file for bankruptcy in which case the professional counselor will never be paid. This is clearly unfair.
 
Many analysts are reporting that the banks were also underhandedly behind this legal ploy in California as they do not want to have to deal with lawyers as they try to help these frustrated consumers.
 
This unfortunate recoil and legal snafu has now given most banks (a.k.a institutional swindlers as some would say) "carte blanche" as in full powers in doing whatever they feel is advantageous for themselves and clearly not for the poor homeowner who desperately needs a [http://www.stlouisrefinancinggroup.com/st-louis-mortgage-news/principal-loan-reduction-law-to-protect-backfires-on-homeowners loan reduction].