Caps are good start, but personal injury lawyers are still trolling

The Illinois General Assembly’s recent passage of caps on medical malpractice awards is a positive step forward in the fight to stop lawsuit abuse in lawsuit-happy Illinois. But legislation can only do so much to restore common sense and fairness to our courts. Unfortunately, there is still much more that needs to be done in the fight against greedy personal injury lawyers. We see those television ads morning, noon and night. Personal injury lawyers are encouraging people to hop on the lawsuit bandwagon and sue. These advertisements often pretend to be “warnings” to patients, but we all know the motivation behind this. Some greedy personal injury lawyers are trying to get rich, and they don’t care if they have to reduce our access to healthcare in the process. The real problem here is that many of the plaintiffs recruited to join lawsuits have not been harmed in any way. But to a greedy personal injury lawyer, more plaintiffs can mean more money in a class action lawsuit. Unfortunately, this hurts those who have been injured and takes away from their compensation. Our civil justice system is in place to help victims, but it is being abused by greedy personal injury lawyers. The general public is keenly aware of the lawsuit epidemic being encouraged by aggressive personal injury lawyer advertising. A recent survey shows two thirds of Illinois residents believe personal lawyer advertising encourages people to sue even if they have not been injured. Also, an astonishing 83 percent agree that personal injury lawyers who file health care lawsuits are more interested in making money than in helping patients. Misleading advertisements also can have a negative health impact. According to a Harris Interactive survey, 40 percent of pharmacists report being aware of patients stopping their medication when hearing the drug might be involved in litigation, no matter how frivolous the claims may be. This means many people are taking healthcare advice from lawyers instead of their doctor, and that’s a dangerous situation. Illinois is one of the top five plaintiff-friendly states, according to a Harris Interactive report. Personal injury lawyers who use advertising as a way to troll for plaintiffs are only making the problem worse. So, what can be done about this problem? We need rules requiring that ads from personal injury lawyers include disclaimers so that consumers understand how alleged injuries are often speculative and unproven by science. Also, these ads should be required to advise consumers to consult their doctors before considering whether to join a lawsuit. And finally, advertising should inform consumers that unless they themselves have been injured, joining a lawsuit may take compensation away from legitimate victims. Of course, people also need to move away from the “sue first” mentality that pervades our culture. Taking a problem to court should be a last resort, but, sadly, it’s a first instinct for many people. It’s time to fix our broken legal system, because the lawsuit epidemic is making us sick.

$360 Billion of Mortgage Debt at Risk of Foreclosure Among U.S. Homeowners

(PRWEB) June 7, 2005 -- With mortgage interest rates poised to rise, the U.S. economy teetering between expansion and uncertainty, and American consumer debt still raging, many U.S. homeowners risk foreclosure on their home – but they don’t have to lose their slice of the American dream, says Andrew Housser, co-CEO of Freedom Financial Network. According to the Mortgage Bankers Association of America, 4 percent of mortgages are in delinquency in early 2005. With $9 trillion in outstanding U.S. mortgage debt, that places $360 billion at risk of foreclosure. “Homeowners can make choices – ideally, before they purchase a home, but even after problems arise – that will allow them to keep a home or at least minimize the damage a foreclosure could have on their futures,” said Housser, whose company provides debt resolution services for people in serious debt hardship, particularly those who incurred debt because of divorce, job loss, medical problems or other traumatic events. In many states, foreclosure rates have increased recently (Source: RealtyTrac.com). Housser believes the increase stems from consumers incurring too much debt – a national total of $2.1 trillion in revolving debt, plus more than $9 trillion in mortgage debt, according to the Federal Reserve. Here, Housser provides tips for preventing and avoiding foreclosure. 1. Create a budget and don’t stretch yourself too far. The unexpected can and does happen to millions of Americans each year. “For people who live at the far edge of their means, one life event can hijack their lives and lead to defaults on bills and/or mortgage payments,” Housser says. The key is to build a detailed budget of income and expenses, making sure to have some breathing room to weather an unexpected downturn. 2. Be careful with adjustable rate mortgages (ARMs) or interest-only loans. These types of loans let borrowers qualify for more expensive homes – but beware as rates (and payments) climb. “If you can barely afford the payment on your ARM or the interest-only mortgage, you are asking for trouble in a few years,” Housser says. “Give yourself even more budget space with these loans.” 3. Don’t jump to refinance your home to pay off credit card debt. Many people faced with large unsecured debts that they are unable to pay consider refinancing their home to pay down their credit cards. The problem is that this strategy only moves the debt – and puts your home at risk of foreclosure if you are unable to pay. If you are not confident that you can keep up with the higher payments on your home loan going forward, consider debt resolution or another debt relief option. If foreclosure is already on its way, homeowners still have several options, Housser says: 1. Enter into a forbearance agreement. For a temporary hardship, lenders might grant a forbearance agreement to lower – or eliminate – payments for a limited time. 2. Consider loan modification. A loan modification seeks a permanent change to the loan, such as lowering the payment and extending the loan’s term, or incorporating delinquent back payments (if any) into future payments. 3. Obtain a “deed in lieu” of foreclosure. A “deed in lieu” essentially allows the borrower to return the title or deed of the property – giving the home back – to the mortgage holder to avoid foreclosure. 4. Sell the home. Selling your home may not be ideal, but it is a way to avoid foreclosure proceedings on your house and pay back your lender. 5. Refinance the loan. It may be possible to refinance your mortgage for a lower interest rate and/or lower monthly payment (this is much different than refinancing to take cash out to pay off credit cards). However, if you already have had late payments on your mortgage, the interest rate offered to you may be too high to lower your monthly payment. “A reputable foreclosure assistance organization, such as a debt resolution firm, can help with these options,” Housser advises. “Check with the Better Business Bureau to make sure your chosen company is on the up-and-up.” Housser suggests that people facing foreclosure be wary of so-called equity skimmers. “If your house is facing foreclosure, you will probably receive solicitations from several people who are looking to ‘help’ you prevent foreclosure by offering to sell your home for you or by taking ownership of your home,” Housser cautions. “In most cases, these solicitations are scams trying to take advantage of people in difficult situations. The perpetrators are trying to take the equity you have built up in your home right out from under you.” Freedom Financial Network, LLC (www.freedomfinancialnetwork.com) provides consumer debt resolution services through its Freedom Debt Relief, Freedom Foreclosure Relief and Freedom Tax Relief divisions. Working directly for the consumer, the company negotiates directly with creditors, and offers an alternative to bankruptcy, credit counseling, and debt consolidation. Based in San Mateo, Calif., Freedom Financial Network serves more than 3,000 clients nationwide and manages more than $100 million in consumer debt.

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