It is a “new legal specialty whose strategies and techniques are still being worked out,” but it goes a little something like this, according to the Miami Herald:

“For instance, if the mortgage was $500,000 and is reduced by the bank to $200,000, the client would owe Ticktin 40 percent of $300,000, or $120,000, minus any legal fees paid by the losing bank as well as any monthly sums paid to the law firm. Clients would be attracted to this arrangement because they might save nearly $200,000 and avoid foreclosure.”

The flip side of this token:

“For any of this to happen, of course, he has to win his cases. Successful foreclosure litigation can take years, and even if the banks are under fire few believe they will go out of their way to make it any easier. But even if people in foreclosure never win a settlement from a bank, they could stay a few more months in their homes by filing a lawsuit.”

There are some lawyers who call it “creepy,” “queasy” and “crass.” However, for those in financial distress who really want to fight to stay in their homes — and can’t afford to pay excessive attorneys fees — this is at least one option to consider.

To each their own.

He didn’t make up the complete list, but our in-demand president and CEO was asked by Reuters.com to share his expert opinion on the topic.

Here are the “five tips from people who were on the buy side of the latest real estate mess:”

1. Pick up the phone
2. Stay away from the courthouse steps
3. Wait for a bargain
4. Go short
5. Sit tight at home

Brad, because of his success with (and knowledge of) short sales, contributed on “Go short,” saying that they are becoming more and more available in the current market.

Need proof?

Just check out the growing nationwide list of short sale properties now available on Foreclosure.com.

FREEZE! Don’t move a muscle.

That’s exactly what J.P. Morgan Chase, which is among the largest banks in the United States, intends to do as it sorts through stacks of potentially-flawed foreclosure paperwork, according to the Washington Post.

About 56,000 borrowers in 23 states will be granted temporary reprieve from possible eviction while the bank investigates claims about “forged documents and signatures and other similar problems are being used to try to overturn court-ordered evictions.”

Apparently, serious questions have been raised about whether or not the foreclosure files were properly assembled and if the employees who signed off on/executed the documents even reviewed them.

In fact, a J.P. Morgan Chase employee recently admitted that “she and her team signed off on about 18,000 foreclosures a month without checking whether they were justified.”

Sounds like a big mess.

At least J.P. Morgan Chase is doing the right thing now to fix whatever mistakes or oversights it may have made in the past. Expect other lenders/banks to follow suit as the lens on this issues begins to sharpen.

LoanSafe.org, which refers to itself as “America’s #1 consumer mortgage forum,” has compiled a helpful list of potentially suspicious requests from con artists who pose as foreclosure rescue experts.

Here it is:

• guarantees to stop the foreclosure process – no matter what your circumstances
• instructs you not to contact your lender, lawyer, or credit or housing counselor
• collects a fee before providing you with any services
• accepts payment only by cashier’s check or wire transfer
• encourages you to lease your home so you can buy it back over time
• tells you to make your mortgage payments directly to it, rather than your lender
• tells you to transfer your property deed or title to it
• offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale
• offers to fill out paperwork for you
• pressures you to sign paperwork you haven’t had a chance to read thoroughly or that you don’t understand.

The most important thing that distressed homeowners who are facing foreclosure can do is seek help. There are numerous non-profit organizations and government programs available to help these folks out if and when possible.

Unfortunately, there is a criminal element that is aware of this reality and is out to exploit it for their own personal gain. So if an offer sounds too good to be true, it more than likely is when it comes to foreclosure prevention.

Do your homework. Stay on your toes. And be weary of unsolicited mail not from your bank/lender and anyone who shows up on your front doorstep.

Good help is out there, but chances are you’ll have to go and get it … don’t expect it to just magically appear.