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“Attorney Suggested that My Client Use a Different Lender”

By
Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

“Attorney Suggested that My Client Use a Different Lender”

 

 

OK, I admit it; I don’t like this attorney and have let her know that. I get very protective of my clients when they are asked to pay twice as much as other attorneys for handling a real estate closing.

 

I ask all clients if there is a particular attorney they want to handle their closing. In this case the folks said yes. I asked if they discussed cost so that I could include the numbers correctly as we were doing the application. They said not as of yet so they immediately called, fortunately they were able to reach her and asked the question. She said her fee was $1200, plus $250 for the title search. The phone conversation ended.

 

Since these folks were first time home buyers, they were already tight on dollars but these costs were crazy. I told the client that these estimates were much higher than most other attorneys and recommended that they do a little shopping for these services. They said they would and they asked for some recommendations. I gave then three different names and numbers. In the meantime, not to hold up the application we used the numbers that this attorney gave us. Unfortunately the fees quoted are about double what they should be.

 

The following day I got a call from the original attorney, telling me that she was planning on filing a complaint against me with the banking commission and let me know what a really nice person I was (actually not really). I have yet to hear about any complaints, but who knows.

 

The clients ended up going with a different attorney for the services. They had called the original attorney and let them know and that is why she called me and ever since continues to say good things about me, (actually not really).

 

I understand each of us in business have the right to charge what they feel their services are worth. Situations like this are never comfortable. I had to explain to this client, why this attorney loves me as much as she does.

 

How would you have handled this kind of situation?

 

Image courtesy of stuartmiles/freedigitalphotos.net

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Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

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Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

Fred Cope
Reliant Realty in Nashville, TN - Nashville, TN
Looking For Homes With A Smile

Joe, at one point in my mortgage career, I had a similar situation with a pricy attorney, and chose not to directly question costs (he was related to the wife-applicant), but I explained the need for his resume and insured closing letter. Since he was not approved, I offered to contact him and discuss needed documentation. I used fees from an approved attorney, and suggested he review fee structure. It turned out real estate was not his area of expertise, and he knew the attorney I had referenced. He referred them to the other attorney. He did the right thing, and I didn't have to knock on her relative. I have worked with some very good and reasonable attorneys and some who fumbled more than a football player on a rainy day. Divorce litigation on another deal had he and I working together briefly, as I needed copies of decree and settlement agreement on an applicant.

Nov 21, 2015 06:10 AM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

I would have done exactly what you did, well done!

Nov 21, 2015 06:25 AM
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Joe Petrowsky 

As always, you gave your client the right advice!

Nov 21, 2015 10:58 AM
Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

Whats Black and Brown and looks good on a Attorneys back? A Doberman. Pretty much sums it up.

Nov 21, 2015 11:50 AM
John Novak
Keller Williams Realty The Marketplace - Las Vegas, NV
Henderson, Las Vegas and Summerlin Real Estate

Sounds like the attorney was exploiting the naivete of first-time buyers. Glad to hear that you were there to help them keep their costs in line.

Nov 21, 2015 02:55 PM
Rob D. Shepherd
RETIRED - Florence, OR
RETIRED

You did it right by giving more than 1 name for them to check out an make a decision.

Nov 21, 2015 10:08 PM
Thomas F. Scanlon
Borgida & Company P. C., CPA's - Manchester, CT
CPA, CFP

Joe Petrowsky -Well done. Excellent post. Great job protecting your clients.

Cheers,

Tom

Nov 22, 2015 05:01 AM
Roy Kelley
Retired - Gaithersburg, MD

These are difficult situations. However, I think it is fair to advise clients when they are being grossly overcharged.

Nov 22, 2015 08:56 PM
Keith Kenner
Chatuge Land Co. - Hiawassee, GA
Real Estate Lake Chatuge Realtor Northeast Georgia

You did the right thing in staying within the guidelines of offering at least three options for your clients. Sometimes attorneys will throw you under a bus and then try to represent the bus company. I believe in fair wages for services provided. I also believe in freedom of speach; something all attorneys should understand.

Nov 22, 2015 09:21 PM
Paul McFadden
Responsive Pest Control - Seattle, WA
Pest Control, Seattle, WA.

That's a tough one. You try not to take it personally but some people know how to get under your skin. I think you handled it as as professionally as possible.

Nov 22, 2015 10:03 PM
Patricia Kennedy
RLAH@properties - Washington, DC
Home in the Capital

Hey, Joe!

I included this post in today's "Last Week's Favorites".  And have a fun Thanksgiving.

Nov 22, 2015 10:35 PM
Kristin Johnston - REALTOR®
RE/MAX Platinum - Waukesha, WI
Giving Back With Each Home Sold!

I really enjoyed your post!  So glad that Patricia highlighted it this week!

Nov 22, 2015 10:53 PM
Paul Weir
RE/MAX Gold - Grass Valley, CA

Hi Joe, 

I think you did right by your clients. Nice work. 

Giving the 3 alternate attorney options was perfect and then it is up to your client to make their preferred choice. You set a great stage. 

That disgruntled lawyer is obviously swimming in business considering how much time she has to go after you -- for a 'non issue'.

Keep up the great work you do! 

Nov 23, 2015 12:22 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

If this attorney wanted to match the fees they could've gotten elsewhere, she could have maintained the business.  That's what I would've asked her when she called for my head.  Would she accept what other attorneys were offering?  That way, she shoots herself in the foot and you aren't the bad guy.

Nov 23, 2015 02:08 AM
Mark Daly
Group One Mortgage - Jupiter, FL

Good job Joe, first time home buyers need a little direction.  I'm sure you're not the only one that this attorney says nice things about.

Nov 23, 2015 02:16 AM
Susan Jacobsen
The Alliance Group Realty - Hilton Head Island, SC
20 Years Providing WOW Real Estate Service

Joe - the whole basis is RESPA, she can't refuse to do business with you, you can't refuse to do business with her and none of us can tell a consumer who they must use. You handled it properly but I understand your frustration - I had a seller I was working with go to an attorney to help with a short sale and she said she ONLY works with Realtor "X" and that wasn't me - I didn't know that attorney and she didn't know me and by the way, she acted illegally - I didn't file a complaint with the state bar but always wished I had - this attorney who doesn't like you is unethical.

Nov 23, 2015 08:51 AM
Jack Gerbehy
Egg Harbor Township, NJ

Nice part about this county..... attorneys are rarely used, everything falls to title 

Nov 23, 2015 10:14 AM
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

I think that each individual buyer needs to do their own due diligence.  If this attorney is upset with you because you suggested that they shop around, you did nothing wrong.  Given your experience with the numbers, you could recommend that they check out the competition.  I would bet that you won't see an actual complaint, she just won't be your biggest fan.  Good luck.

Nov 24, 2015 03:21 AM
DEANNA C. SMITH CERTIFIED MOBILE NOTARY
Certified Mobile Notary Signing Agent - Smith Mountain Lake, VA
Highest Ranked Certified Mobile Notary in Virginia

It is NOT up to me to decide what an attorney thinks  they are worth Joe Petrowsky but I can provide my clients with a price list of area attorneys and let them make their own choice, which I do.   If the overpriced attorney doesn't want to be realistic, that is their choice and they will have to live with it.

Nov 25, 2015 08:51 AM
Valerie Crowell
Keller Williams - Walnut Creek, CA
Broker Associate

You did the right thing.  She has to charge that because she's making up for all the clients she doesn't have who do their due diligence.  Next!

Nov 26, 2015 10:25 PM