Legal Service Plans Can Benefit Homeowners Facing Foreclosure

    



    
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<p>ADA, Okla., <chron>Nov. 19</chron> /CNW/ -- As the foreclosure crisis in the U.S. expands, along with a rising unemployment rate now at 10 percent, one thing has become all too clear: homeowners who are in danger of losing their homes to foreclosure need access to affordable professional legal services.  Yet, at the time that many homeowners most need legal counsel, to understand their rights, obligations and options, they are least able to afford these vital services.  By some estimates, 3.4 million households will receive a foreclosure notice this year and 2010 may set another record in foreclosures and homes lost.</p>
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<p>"The foreclosure crisis has focused a spotlight on the need for preventative legal services that people can afford and rely upon," said Harland C. Stonecipher, Founder and CEO of Pre-Paid Legal Services, Inc. (NYSE: PPD).  "While federal and state foreclosure assistance programs gain traction, too many American families are losing their homes.  Access to legal counsel can mean the difference between keeping your home and losing it," Stonecipher said.</p>
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<p>Recently, Pre-Paid Legal Services executives organized a conference with a select group of attorneys from the 38 independent law firms that provide legal services to Pre-Paid Legal Services members (customers) throughout the U.S. and four provinces of <location>Canada</location>.  The topic of discussion concerned what the provider attorneys (and their firms) are doing to assist PPD members facing foreclosure.</p>
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<p>Attorneys from Arizona, California and Florida -- three of the states hardest hit by the foreclosure crisis -- participated in the conference call organized to provide practical information and insight to PPD's network of independent sales associates.</p>
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<p>Judy K. Kim, an Associate with Parker Stanbury, LLP (<a href="http://www.parkstan.com">www.parkstan.com</a>) of <location>Los Angeles</location>, California, noted the importance of developing an "action plan" for managing the process to avoid foreclosure.  "From the beginning, we work with members to understand their current circumstances, determine the best option to avoid foreclosure, and then create a step-by-step plan for moving forward," she said.  Kim believes in putting a "personal face" on the process, encouraging members to develop and submit their own handwritten hardship letter to mortgage lenders as part of the appeal process.</p>
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<p><person>Davis Miles</person>, PLLC (<a href="http://www.davismiles.com">www.davismiles.com</a>) of Mesa, Arizona, a PPD provider law firm since 2004, has organized a comprehensive platform of activities to assist PPD members (and other clients) who are facing potential foreclosure.  The firm has developed a special loan modification program which is communicated through free local market seminars (targeting the most distressed communities), on the firm's website and on a weekly radio program broadcast on KFNN 1510.com on Thursdays at <chron>1:00 p.m. (MST</chron>).  <person>Davis Miles</person> has also added an attorney who specializes in "short sales" to better assist homeowners who require information and negotiating assistance with this process.</p>
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<p>Harley S. Herman, a Senior Associate with deBeaubien, Knight, Simmons, Mantzaris & Neal, LLP (<a href="http://www.dbksmn.com">www.dbksmn.com</a>) of <location>Orlando</location>, Florida, said Pre-Paid members have access to the most current information related to foreclosure coming from an unbiased and trustworthy source.  "The foreclosure crisis has created a cottage industry of real estate and foreclosure work-out scams.  We help our members avoid these situations while providing timely, professional legal counsel on foreclosure and related issues," Herman said.</p>
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<p>Pre-Paid Legal Services offers a variety of legal service plans that vary by state (and province) in terms of pricing and benefits.  A specific list of these plans, benefits and costs is available at the Pre-Paid Legal Services corporate web site at: <a href="http://www.prepaidlegal.com">www.prepaidlegal.com</a>.</p>
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<p>"At a time when many homeowners are in fear of foreclosure and of taking action to deal with the challenge, gaining access to affordable legal services can be the first step in maintaining hearth and home," <person>Chairman Stonecipher</person> said.  "For dealing with foreclosure and other 'life events,' legal service plans offer real benefits at an affordable price."</p>
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    About PPD
    
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<p>We believe our products are one of a kind, life events legal service plans. Our plans provide for legal service benefits provided through a network of independent law firms across the U.S. and <location>Canada</location>, and include unlimited attorney consultation, will preparation, traffic violation defense, automobile-related criminal charges defense, letter writing, document preparation and review and a general trial defense benefit. We have an identity theft restoration product we think is also one of a kind due to the combination of our identity theft restoration partner and our provider law firms. More information about our products and us can be found at our homepage at <a href="http://www.prepaidlegal.com">www.prepaidlegal.com</a>.</p>
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    Forward Looking Statements
    
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<p>Statements in this press release, other than purely historical information, regarding our future plans and objectives and expected operating results, dividends and share repurchases and statements of the assumptions underlying such statements, constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements contained herein are based on certain assumptions that may not be correct. They are subject to risks and uncertainties incident to our business that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties are described in the reports and statements filed by us with the Securities and Exchange Commission, including (among others) those listed in our Form 10-K, Form 10-Q and Form 8-K, and include the risks that our membership persistency or renewal rates may decline, that we may not be able to continue to grow our memberships and earnings, that we are dependent on the continued active participation of our principal executive officer, that pending or future litigation may have a material adverse effect on us if resolved unfavorably to us, that we may have compromises of our information security, that during an economic downturn in the economy consumer purchases of discretionary items may be affected which could materially harm our sales, retention rates, profitability and financial condition, that we could be adversely affected by regulatory developments, that competition could adversely affect us, that we are substantially dependent on our marketing force, that our stock price may be affected by short sellers, that we have been unable to increase our employee group membership sales and that our active premium in force is not indicative of future revenue as a result of changes in active memberships from cancellations and additional membership sales. Please refer to pages 15 - 17 of our 2008 Form 10-K and pages 7 and 8 of our <chron>September 30, 2009</chron> Form 10-Q for a more complete description of these risks. We undertake no duty to update any of the forward-looking statements in this release.</p>
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For further information: George Snyder of Pre-Paid Legal Services, Inc., [phone], cell, [phone], [email protected] Web Site: http://www.prepaidlegal.com http://www.dbksmn.com http://www.davismiles.com http://www.parkstan.com