With our bankruptcy already discharged and now going into SS negotiations (see my other lengthy posts) :rolleyes , should we hire an attorney to handle the closing to be sure we do not get any judgements against us?
What is a fair price for something like this? :help
We could not afford a lawyer for the bankruptcy (chp 7), but I am afraid we have no protection now against a judgement after the short sale.
Thanks in advance for any input :biggrin
A good, experienced realtor (short sale expert) should be able to see that the ss is properly executed thru to close of escrow. And the nice thing is the lender will pay the realtor’s comission, so you won’t have to pay anything out of pocket.
Well, unfortunately my realtor is not experienced - it’s “family” :rolleyes and she did say we should consult an accountant or attorney :shocked - O si don’t want to spend wht I really need to save at this point.
Tough position you’re in. It’s either you hurt someone’s feelings or fork out the extra $$ for legal expertise. Another suggestion would be for your family realtor to seek out the help of a short sale negotiator (their broker should be able to find one) and pay them a portion of the comission to guide them through the closing.
Never do business with family unless your ready, willing and able to HURT their feelings.
Yes - I think we have done that by now. I found another possible short sale listing for her and she is not liking the listing end of the business (already - wonder why)! :shocked and will pass it on to her broker.
I hope your relative has a different last name than you. Banks won’t let you see any benefit(funds) from a short sale, even from commision. If it’s the same last name it might not be a long enough arms length transaction. Just something to think about before you ask her to "split "her comision :flush
We are not getting any of the money, and she does have a different last name. She did disclose on the listing that she is related to seller - can that hurt the deal?
It shouldn’t hurt the deal, she just might not get any commision. My wife is a Realtor and did the same thing for my brother. She had to forego her commission. Its all up to the bank. If they can save a dime they will.
Ok first of all an experienced short sale realtor is not your legal defense! If you are doing a short sale you are dealing with legal contracts for the sale to be approved. Your credit is also affected by the terms of the contract, and enforcement rights of any loss (collection after liens are released) may be in effect after the deal is closed depending on your type of loan. A realtor will tell you to consult an attorney because you will have a STACK of legal paperwork for your lender to release your liens and forgive the debt, and realtors are not lawyers. Even though this is “family” she is right by saying to consult an attorney (and her broker is probably very happy she recommended it so it keeps their butts out of trouble). An attorney will be able to LEGALLY tell you your rights and defend anything otherwise. There are going to be many realtors getting sued in the next few years due to short sales being conducted improperly. In California, if you can’t afford an attorney to get it done right, you’re better off walking and letting it go back to the bank, your credit is already screwed anyway.
While it’s true that your credit has already been affected by late payments, there is a BIG difference between having a “foreclosure” on your credit and “paid in full” with a few lates due to an approved short sale. Walking away does have different consequences to your credit than attempting a short sale - it’s not the same kind of “screwed.”
I agree that you should not attempt a short sale without an experienced and expert realtor at the helm. Just because a short sale is approved by the lender, does not absolve realtors from their fiduciary - and I too see a few law suits resulting because realtors are not adequately trained to deal with these more complicated transactions.