You Walk Away LLC sued in class action lawsuit

Last week You Walk Away LLC was sued for alleged violations of California State Law. Here is a copy of the News Release.

Distressed Homeowners Sue Carlsbad-based �Foreclosure Consultant� YOU WALK AWAY, LLC for Violations of California State Law

CAPISTRANO BEACH, Calif., February 23, 2009 � The Law Offices of Benjamin L. Meeker, APC announced today that it represents the plaintiffs in a class action lawsuit filed against You Walk Away, LLC, a �foreclosure consultant� company located in Carlsbad, California.

According to the complaint filed in San Diego County Superior Court on February 13, 2009, You Walk Away peddles foreclosure consulting �services� and �protection kits� through which it entices desperate homeowners into paying an upfront fee of $995 for an essentially worthless service.

�We believe that You Walk Away�s conduct falls within that described by the California Attorney General�s Office as the �Foreclosure For a Fee Scam�� says attorney Benjamin Meeker. As described by the California Attorney General�s Office, foreclosure consultants who perpetrate this scam advertise to homeowners that they can provide �advice� on staying in their home until they are evicted.

�As its business name illustrates, the plaintiffs allege that You Walk Away entices homeowners into believing that simply walking away from a foreclosed home has few, if any, consequences, while charging hefty fees for its products� Mr. Meeker explained.

You Walk Away Responds

Jon Maddux, CEO of You Walk Away responds with a list of some of the things You Walk Away provides.

1. We provide a personalized cease and desist letter addressed to your lender to stop harassing phone calls.

2. We will provide you with the amount of days you have to live in your house payment free. We stay on top of your walk away plan and keep you up to date with weekly progress emails. We also will notify you if the lender is taking longer than expected subsequently giving you more time in your home payment free.

3. You get a personal consultation with a highly experienced real estate attorney in your state, making sure that you know your rights and that you are protected by the law.

4. You will have an experienced YouWalkAway advocate available to answer any questions you may have during the entire process.

5. You will get a personal consultation with a CPA to go over any tax questions related to walking away.

6. You get access to our attorney network to answer questions via email about your foreclosure throughout the entire process.

7. You will be referred to a 3rd party BBB accredited law firm who has legally removed thousands of foreclosures.

My Take On You Walk Away

Is $995 too much to pay for a decision involving potentially hundreds of thousands of dollars, to make sure everything is done in a legal manner? I think not and if I was to walk away, I would opt for making sure I did not make any mistakes.

Arguably some of what You Walk Away provides can be researched for free, assuming one has the time and energy. On the other hand, a defendant can represent himself in court for free, but that does not make it advisable.

Besides, it is not the amount being charged that is at issue, but whether or not there is a scam. I am not a lawyer, but it seems clear to me that You Walk Away provides a legitimate service.

I have talked about the business model of You Walk Away on many occasions. Here is a sampling.

• January 28, 2008: 60 Minutes Legitimizes Walking Away
• January 29, 2008 The Business of Walking Away
• February 07, 2008 Moral Obligations Of Walking Away
• February 15, 2008 Businesses Advised To Walk Away
• April 15, 2008 Walking Away: The Next Mortgage Crisis

I can sum up my position on all of those as follows: If it's in your best interest to walk, and you are willing to pay the penalty (primarily a bad mark on your credit), then walk.

Anyone who objects on moral grounds certainly has the right to not walk.

Some might notice the ad for You Walk Away on the right side of my blog and object that I am biased. To address that concern, and because I feel strongly about the right to walk away in accordance of the law, I am waiving my fee on that ad for the time being.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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