Here’s a current deal that’s been driving me nuts thanks to an incompetent, paranoid attorney. Maybe after reading it you can avoid my mistake of not thoroughly interviewing the attorney before you agree to work with him.
I have a short sale right now, approved and ready to close. After the first closing, it was supposed to be resold a few days later in a separate transaction. A very simple concept for anyone with half a brain in this business.
So I was referred to a title company and an attorney who said they’d be able to handle it. I’ve worked on this deal for about a year now and it’s FINALLY going to pay off, or so I thought…
This attorney, let’s call him Tom, would represent the buyer. Tom recently heard some news about a seller sue’ng all the parties involved in a lease-back transaction that went bad. So now Tom is paranoid as all hell. What I didn’t know was that he also represents the title company that I was referred to for this transaction.
So two days before closing, he starts talking like a paranoid freak. He refuses to close the 2nd transaction. He tells me that the underwriter at the title company may not approve of it because they have to watch their behinds in this crazy market. (Keep in mind that he also represents the title company, so he technically is the underwriter).
So now the seller is a person who lives out of state (45minutes away) and doesn’t want to miss work to attend closing. He just wants to get the deal done already and he signed all necessary documents. So he gave power of attorney to his attorney to close on his behalf. He’s married, but they don’t live together. Wife also gave power of attorney.
Now closing has been rescheduled 3 times and it’s now set for Friday, everything is ready. We wanted to close the 2nd transaction on the following Tuesday, but we couldn’t because Tom insisted on recording the deed on Monday and it wouldn’t be ready in time. OKAY, I’ll accept that. Even though the locked-rate for the mortgage expires on Tues and the 2nd buyer lost a great rate.
Then Friday morning, Tom talks to the seller’s attorney and tells him that he won’t do the close unless the Sellers attend closing. The husband lives 45minutes away, wife lives 30 minutes away. Neither live together, both work, and they both signed the power of attorney. So the deal, yet again, doesn’t close.
It’s now rescheduled for next week, given that the sellers are both able to come to the attorney’s office. They don’t have to come together, they can come separate. And then hopefully, we can schedule to close.
Now I’m so sick and tired of this attorney. I’m experiencing what I’ve heard from others: I have an attorney who’s job is to pick a part this deal and try to find every possible way to kill it.
What would you all do in this case? We didn’t even pay him a retainer fee because it was a referral and right now I feel like canceling everything and getting a competent attorney. I could understand him being cautious, but they had told me that they’d be able to handle this transaction and it’s obviously BS because he has very little experience with short sales. Case in point: I had two approval letters from the same bank and he asked me “Why does one approval letter show only $0.00 going to the bank?”.
Would you toss this guy out and take the deal elsewhere at this point?
Would you give it a final try, try to get the sellers to their attorney’s office, and then try to close soon after.