Lawyers needed to wade through foreclosure flood: Glitch won't affect lawyers handling foreclosures.

A new state law aimed at cracking down on scammers taking advantage of homeowners facing mortgage foreclosures will not affect the hiring of attorneys by those homeowners, according to Attorney General Bill McCollum.

In a July 8 letter, McCollum clarified that the provisions of HB 643 will not apply to the attorney-client relationship or the way attorneys are paid when they are hired to help distressed homeowners.

The bill regulates the activities of "equity purchasers" and "foreclosure-rescue consultants." Early drafts of the bill specifically excluded lawyers from the bill's restrictions and regulations, but that exemption was apparently accidentally dropped while the bill was amended as it proceeded through various committees.

That left many lawyers concerned their services--both when hired to defend a foreclosure action and to handle a bankruptcy that could forestall a foreclosure--might fall under the new law (F.S. [section] 501.1377).

McCollum's letter, sent to Bar President Jay White, addressed that.

"Pursuant to its authority under Section 501.1377(2)(b)2, the Office of the Florida Attorney General, Department of Legal Affairs, hereby approves for exclusion from the definition in this provision of a foreclosure rescue consultant, a person licensed to practice law in this state, when such person provides legal representation to a client with respect to a foreclosure," McCollum wrote.

He also noted that the letter will "ensure that the attorney/client relationship is not adversely affected by this new provision...."

"It's an elegant solution to what was essentially a slip," said Burt Bruton, chair of the Legislative Review Committee of the Real Property, Probate, and Trust Law Section.

"This is a very welcome development and this action by the Attorney General's Office is a substantial step which should offer reassurance to those who are trying to assist homeowners facing foreclosure and especially those attorneys who are assisting victims of foreclosure rescue scams," said Dade City attorney Michael Wasylik, who posted an online article about the glitch with HB 643. "This action brings the legislation more in line with the original intent of the bill as proposed by the attorney general, and is a significant step to ensuring homeowners have all of the resources they need to fight...