Q: What des it mean when money is held in trust by a law firm
I defaulted on my mortgage, so it went to a legal firm. I paid more than 5000 to a legal firm as part of a payment proposal that never came to fruition. I ended up in court and a year later have to get my mortgage up to date. 5500 dollars is being 'held in trust.' what does this mean?
A: It appears that you need to examine your agreement with the so called "legal firm", which I am assuming is in writing. Most likely they are supposed to take the money out of trust and pay off the mortgage debt, after subtracting their fees. There may not be enough to payoff the mortgage, much less bring it current. But that money sitting in their trust account is not doing you any good. Get your legal firm in gear, but report any procrastination to your State Bar.
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