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Short Sale Advice- Realtors & Sellers

Yesterday I had one of my Short Sale sellers email me, "Wendy, I think Sue told you that we were served with foreclosure papers a week or so ago, and we need to file a response by early next week. Is there a file number or reference number and dates that we can include in our response to prove that we are in a negotiation for a short sale? Also, is there anything that we would need to include in our response? ".

I asked an attorney how I should respond to inquiries like these from Short Sale sellers who don't want to hire a lawyer. He said:

"If they are served then they really have to get to an attorney. If you advise them otherwise or help them prepare responses then you could be liable for damages they sustain and practicing law without a license. There is also a recent law that may apply that could entitle the person losing their house to $15,000 damages judgment and attorney fees if they can categorize you as acting outside the scope as a Realtor and promoting foreclosure relief... especially dangerous for Realtors if they are not arms length with the buyer or can be shown to coerce a sale, etc."

Good advice.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Specializing in SHORT SALES and FORECLOSURES on the Emerald Coast of Florida: Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

www.ShortSaleForeclosureHelp.com

www.RulnickRealty.com

Posted by Wendy Rulnick "Its Wendy!" Destin Short Sales on 05/30/2008 08:35 AM

Comments (12)

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Originally posted at: Destin Short Sales- Emerald Coast Florida Real Estate: Short Sale Advice- Realtors & Sellers

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12 Comments on Short Sale Advice- Realtors & Sellers

MAY

2008

Good to know. I'll make sure people talk to an attorney for the legal advice side of things.

greta advice

Chuck- Good to keep in mind, especially in this market.

Fernando- Thank you.

WENDY--We specifically have paperwork inlcuded in our packages that clearly states that we are Realtors and they should consult with a lawyer or accountant for legal or financial matters. It's a slippery slope but it is better to be careful for everyone's sake.

Thanks for the post!

MAY

2008

Sidney, That is an excellent idea.

JUN

2008

Wendy, yes....this is valuable advice. As Realtors we really do need to be careful when we're dealing with short sales and pre foreclosure

JUN

2008

Wendy- they can go and appear before the court on their own behalf. You can go with them. The judge will ask who you are and when he is told you are a Realtor, I have heard of judges delaying the foreclosure motion a few weeks to let the Realtor try and sell the home.

Lynn- Yes, in reference to both legal and accounting,

Mark- Some of my sellers have appeared on their own. I don't think I'd be comfortable accompanying them. Have you ever?

Actually, the client can request a 60 to 90 extension of a court hearing when they first receive the notice of default from the lender. The request should be sent in writing to the lender and the lawyer representing the lender--if any. At the time of the court date for the establishment of the bank sale itself the homeowner must appear in court, the Realtor's appearace is not necessary, and again ask the judge for a 60 to 90 day extension of the bank sale. In 90% of the time both extension are granted with varying lengths.

The first extension is needs to be requested within 21 days of the default--not the notice of.

Sidney- By extension of court hearing, do you mean it can de delayed to 90 days?

Yes, when you get the notice of default--the proces can be stopped by up to 90 days. Once the process begins again and the notice of the hearing to set the banks sale date comes the homeowner can again delay that bank sale for up to another 90 days. All in all the entire process, here is South Florida can take up to 210 days from the first default.

Default--Notice of Default--90 day extension--hearing to set bank sale--90 day extension--bank sale date.

Sidney- Thank you for the plethora of information, I'm sure it will come in handy for all!

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