Attorney Negotiated Short Sales are Still Just Short Sales
What does it take to negotiate a short sale? That’s easy. It takes a home owner who wants to sell their home. It does not require a lawyer, a REALTOR, or any other special entity. There is no requirement for certification, licensing, or any special degrees that are required to talk your lender into accepting a payment for less than you owe.
The Path of Least Resistance
Attorneys don’t have any more power to negotiate your short sale than you do. What they do have the power to do is charge you a retainer up front to do exactly the same thing that you can do. Now, as a short sale expert, I can tell you that you do not want to be the one handling the negotiations. It is time consuming. You’ll be on the phone constantly with your lender hounding them for information. You’ll be taken away from your work, your family, and your peace of mind. You’ll make roughly 60-90 phone calls and will be bullied by them. Regardless of the fact that you could do this yourself, you would be crazy not to hire someone else to do it for you.
So Who Do You Hire?
Well, that’s completely up to you. But hiring an experienced Realtor is your best and least expensive avenue. Through the process you are going to have questions that need to be answered. You’ll have questions that involve deficiency judgments. That’s when the bank holds you responsible for the difference between what you owe, and what the home sells for. Those questions are answered by an attorney. You’ll have questions about your tax liabilities. That’s what your CPA is for. Then you’ll have questions about selling your home and negotiating with the lender. That’s what we’re here for.
So Who Negotiates With the Lender?
The Realtor handles this for you. Why? Because he or she is paid at close of escrow and does not charge you up front. If you hire an attorney to negotiate your short sale, you will pay a retainer before anything comes of it. If the lender doesn’t agree to the sale, you cannot recover that money. CPA’s just don’t do this type of work, so you wouldn’t ever hire them for anything other than tax advice.
Why are Attorney’s Selling Negotiation?
Because there’s a market for it. But you still need a Realtor to list your property and negotiate a contract price on your behalf. Also, because the attorney gets money up front. They also give you no guarantee that they will succeed. Just because they’re an attorney does not give them any more ability to negotiate with your lender than anyone else. They aren’t “forcing” the banks legally to accept less than you owe, but because they’re “attorneys” there’s some sort of mystical magical power that people think they have as opposed to a Realtor. They’re just doing what your Realtor has been thoroughly trained and is well-qualified to do for you.
Note: It is absolutely critical that your Realtor know how to manage a short sale.
If you’re going to sell short, don’t you want someone who has your best interest in mind? I don’t charge an up front fee to do the same job better than they can. Take the path of least resistance, and least financial risk. Leave the legal issues up to the attorneys. Leave the sale negotiation up to us.
For more info please visit harcourtlegal.com.