Why do Attorneys think Foreclosure is no Big Deal?
More often than not, I have clients and customers tell me their attorney tells tem to just file bankruptcy and let the lender foreclose on the house.
This is unbelievable to me! I have asked several attorneys why they think this. I believe they don’t realize the credit impact a foreclosure can possibly have on a client’s ability to buy another home in the future.
Currently, on the standard 1003 loan application form, there is a question about foreclosure or deed in lieu of. This must be disclosed as a material fact.
There is no disclosure, however, for a short sale on this loan application.
For an attorney to say that a short sale is the same as a foreclosure, to the client, is not accurate, in my opinion.
As an agent, I have an attorney that really gets it. I use them as a second opinion sounding board for many short sale clients.
I think it’s important for a consumer to seek the advice of an attorney, but when they receive bad advice, what do you do?