4.3 The Client’s Financial Condition

When evaluating a case, you must determine the client’s current and projected financial condition. Good practice demands that the attorney require the client to fill out, in the client’s own handwriting, a complete and accurate listing of assets and debts and a complete and accurate listing of income and expenses. Many clients have no idea how much they’re actually spending.

Determine whether the client will be able to keep up with all future monthly payments due under the mortgage as well as homeowners and flood insurance payments and taxes. If not, defending the foreclosure suit may not genuinely be in the client’s best interest. You should also consider whether the client is capable of meeting the other responsibilities of homeownership including maintenance, repairs, eventual replacement of roof, heating, air conditioning, plumbing, painting, etc.