It is unethical for a lawyer to share with the client any portion of a fee received in a foreclosure action. The scope of this Opinion is limited to attorney fees charged in foreclosure proceedings. This Opinion does not consider nor limit fees determined and assessed by a court. Foreclosure proceedings herein considered are those which involve the foreclosure of deeds of trust, mortgages, installment contracts or other obligations or security devices permitting the assessment of attorney fees as a portion of the recovery obtained in the proceeding. In some instances, attorney fees and costs are charged to a debtor who redeems or cures the default, or a redeeming junior lienor or to the purchaser at foreclosure sale without a judicial determination of the amount.
Excessive fees are a matter of professional ethics.
A fee is clearly excessive when, after a review of the facts, a lawyer of ordinary prudence would be left with a definite and firm conviction that the fee is in excess of a reasonable fee. The likelihood, if apparent to the client, that the acceptance of the particular employment will preclude other employment by the lawyer. The fee customarily charged in the locality for similar legal services. The amount involved and the results obtained. The time limitations imposed by the client or by the circumstances.