Should a Lawyer or an Agent Negotiate Your Sacramento Short Sale?

Excellent post, Elizabeth.  It sounds like you've got a fantastic team in place... everyone using their strengths to help a client mitigate the pain of a bad situation!

Elizabeth, I suggest to all of my sellers to seek legal advice. Few do. Usually it's because they don't want to spend the money. I never quite figured that out but so be it.

Excellent advice Elizabeth-We have enough stress as realtors without crossing the legal line. You are so right. Let a pro handle it. Congrats on the feature. :-)

Elizabeth - When I read the paragraph you wrote, I knew why you and I get along so well. . .THIS IS SO ME:

In my personal life, I can be sort of a goofball. My husband and I were standing in line yesterday to buy movie tickets to see the hugely popular Harry Potter and the Half-Blood Prince at the downtown Century Plaza. In front of me was a family of four. One of the little kids was staring at the movie posters on the wall. I turned to him with a smile and said, "I bet you are here to see Bruno!" His dad immediately put his arm around the kid and ushered the family to another line.

There have been a lot of articles written critizing those agents who overstep their expertise or who fail to refer their clients to lawyers and accountants, as needed.  The bottom line is those who do not have a clue what they are doing should not represent themselves as short sale experts.

Great Points. Especially the addition of being wary of negotiators and modifiers. Wish we could get that message out to all people facing foreclosure. Also, I really like the formatting of your blog. Very reader friendly.

and...

"I bet you are here to see Bruno!" His dad immediately put his arm around the kid and ushered the family to another line."

LOL!!!!

Elizabeth, Looks as if you've worked out a great system for handling short sales. Great post!  And great info.

Elizabeth - Sellers should contact an attorney for legal advice prior to hiring a real estate expert to sell their home.  As you mentioned the line should never be blurred between our professions.

One of the first things I cover on my short sale listing appointments, is determining if they have met with an attorney and or tax expert.  I also have them sign a disclosure stating that I have advised them to meet with an attorney and tax expert regarding the short sale and how it may effect them.

In NY, it seems that ALL transactions- OK, 99%- involve lawyers, absent a short sale. I don't like it, having come from a place without the interference.

With short sales, however, the "interference" is welcomed- and required. We're just not stepping into it without a lawyer counseling a seller on every possible eventuality, in legalise or otherwise. We'd rather not encounter it at all, but reality is reality.

I wonder if the term "agent negotiator" is a misnomer.  My understanding is that an agent simply be responsible for contacting the bank and keeping track of the process to determine if all documents are in order, if something is missing, and relaying status to seller and buyer agent.    when a lawyer handles this, are they billing the seller their per hour fee?  And how does the title agent get reimbursed?

I have mixed emotions on this...I'll explain why...I am in the middle of a short sale..do you honestly believe that a an attorney will follow up as frequently as you or I?  I can tell you NO!  I do tell sellers they should get legal advice...when I negotiate...with the bank...I do just that...working with the bank is primarly following up.  I don't try to explain legal ramifications or tax implications..not my job man..because its not my expertise.

Its been 50 days...no bpo order..no response from the attorney....and at the end...seller will have to pay...if it makes it to closing!

Elizabeth, I too believe it doing what I'm good at...I certainly wouldn't think of giving any legal advice to clients...it's out of my realm of experience. I'd refer them to their attorney.

Hi Elizabeth -- This post and your volumes of articles on short sales and foreclosures clearly show why all service providers involved in a sale should have demonstrated experience and competencies.  It's hard enough under these circumstances, let alone in less capable hands.

As usual, great advice Elizabeth. I really enjoy reading your blogs.

I am an attorney, but I am not a real estate attorney, and I recommend that all of my short sale clients speak to both a real estate attorney and an accountant/CPA.

Hi Elizabeth...

  We recently closed a short sale that had been started by a law firm who did not know how to put a package together and wrote many long and seller expensive letters to the lender and the foreclosure action continued..the seller came to us ....at no cost to him or course and bingo offer and closing. We kept the law firm "in the loop" with e-mails and now they are a great source of referrals.  Legal advice is a good thing...law firms negotiating shorts...not so much.

Great advice!  Thanks for sharing this!!!

CIAO from Virginia Beach, VA. Asiyah I. Ali, Realtor, Keller Williams Realty - www. AsiyahAli.com

Hi Elizabeth, Sound advice for those considering a short sale, even in a "normal" sale we recommend people consult with an attorney and accountant or tax advisor. Thanks for another great post.