why does it say attorney involved in a short sale

The primary difference between lawyers and real estate agents when it comes to short sales is that a lawyer can not only negotiate the short sale, but also give you legal advice about the transaction. And, in many instances, the lawyer can represent you in a foreclosure action or help you file bankruptcy, if the short sale falls though.

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What's the difference between a short sale agent and a lawyer?

The primary difference between lawyers and real estate agents when it comes to short sales is that a lawyer can not only negotiate the short sale, but also give you legal advice about the transaction. And, in many instances, the lawyer can represent you in a foreclosure action or help you file bankruptcy, if the short sale falls though. Real estate agents can't give legal advice or …

Do you need a lawyer to sell a short sale in California?

Oct 18, 2010 · Hiring a Short Sale Attorney. Elizabeth Weintraub is a nationally recognized expert in real estate, titles, and escrow. She is a licensed Realtor and broker with more than 40 years of experience in titles and escrow. Her expertise has appeared in the New York Times, Washington Post, CBS Evening News, and HGTV's House Hunters.

Why would a bank approve a short sale?

We believe that using an attorney with experience in the short sale process is important. If you are behind in your mortgage payments and in danger of losing your home, you need to get advice from the right people. Many people say to contact your lender as soon as you fall behind in your mortgage payments.

Do I need a lawyer for a short sale in New Jersey?

Nov 11, 2007 · In this environment of the short sale it seems apparent that the bank controls the sale. Some might say the buyer controls the sale. My opinion is that both statements are primarily incorrect. The seller owns the house. The seller must sign the …

Why would a short sale be denied?

A short sale is sometimes denied due to something as simple as the seller being current on paying their mortgage. The bank's guidelines might state the bank isn't allowed to approve a short sale if the mortgage payments aren't in arrears.

Why should a borrower seller have an attorney?

Hiring a real estate attorney is critical in ensuring that the legal transfer of property goes smoothly. Whether you're the buyer or seller will determine their primary objectives and purpose.Jan 6, 2022

Who has the final say when we have a short sale?

As explained above, in a short sale, the seller does not have the final say over whether or not to accept an offer. Instead, it must be accepted by the seller and then go to the bank, where several other levels of approval are often required.Sep 16, 2019

Which is the most likely consequence of a short sale?

But a short sales results in a loss on the loan, and the end of interest payments and servicing charges that represented the lender's profit.

Why do Realtors not want buyers and sellers to meet?

Why is it that agents are so reluctant to let buyers and sellers get together? Unlike most business deals, the sale of a home can get very personal and real estate agents are nervous about the parties dealing with each other. That's because most agents have seen what can go wrong when buyers and sellers meet directly.

What does a real estate attorney do for a buyer?

A real estate attorney's role is to ensure the legal transfer of property from seller to buyer. These attorneys handle tasks like preparing or reviewing documents, ensuring that the title is clear and facilitating the transfer of funds.Apr 6, 2021

Do banks approve short sales?

Banks generally do not approve a short sale until the bank receives an offer from a buyer. Therefore, the usual way a short sale can be approved is for a buyer to submit an offer. ... The seller delivers the lender's required documents to the agent. The buyer submits an offer subject to lender approval.

Can you offer less on a short sale?

Can You Negotiate A Short Sale? It is entirely possible to negotiate a short sale, but doing so can be a time-consuming process. Instead of negotiating with the seller alone, as is the case with most traditional sales, short sale negotiations must be approved by the lender, too.

How long does it take for a bank to approve a short sale?

A short sale can take up to six months to be approved because many factors can slow the process down. You might be able to reduce the time it takes to be approved by asking your agent for some information before making an offer.

How do you negotiate a short sale?

7 steps to easily negotiating the purchase of a short sale propertyCommunicate and Set Expectations.Gauge the Market.Advise About Lowball Offers.Know that Short Sales Are More Attractive When You Have a Cash Buyer.Once You Make the Offer, Be Patient.Remember That You're Negotiating With the Lender.Be Resolute.May 15, 2017

Is short sale worth buying?

In short, short sales are a good idea if you have plenty of time and money. A short sale buyer may get the property at a reduced price, but the property (in all likelihood) has its share of problems — think “fixer-upper” — and the deal needs to go through considerable red tape to make it happen.Jul 31, 2020

Do short sales have to be cash?

The short sale process is a lot like buying a home off the market. You'll start by finding a house and getting pre–approved for financing (unless you're paying in cash). Then you'll make an offer, negotiate the sale, and close.Jan 14, 2021

What is asset protection?

Asset Protection. Banks scrutinize a seller's financial statement. Banks examine a seller's bank accounts, tax returns and have been known to pull a seller's credit report. If the bank is taking a loss on the sale, obviously the bank would like to recoup part of that loss.

Who is Elizabeth Weintraub?

Elizabeth Weintraub is a homebuying, home loans, and mortgages expert. With more than 40 years of experience in real estate, including areas such as title and escrow, Elizabeth was nominated as a founding member of the California Association of REALTORS' Real Estate Certificate Institute (RECI) and has received more than 600 hours ...

Can a bank release a seller from personal liability?

Although a bank may forgive the balance between the mortgage balance and the final sales price, the bank might not release the seller from personal liability. This means it is possible that the bank might be able to legally garnish a seller's future wages, attach bank accounts or otherwise pursue the seller for that money. It's called a deficiency judgment. 2 The short sale approval letter may or may not contain verbiage that spells out the bank's specific rights. Absence of such language is no guarantee the bank has released a seller.

Is forgiveness of debt taxable?

If the property is being sold or the owner is insolvent, the forgiveness of debt is not usually considered a taxable event for the homeowner. However, a homeowner should always consider all tax implications before agreeing to a short sale.

Why are short sales important?

Short sales are extremely important because, when done properly, they have the potential of allowing a property owner to avoid bankruptcy and foreclosure, even if the property owner owes more to the lender than the property is worth. The purpose of this page is to provide some basic information about short sales.

What is a short sale?

A short sale is the sale of real estate where the lender agrees to accept less than the amount owed on the mortgage as part of an agreed upon sale, instead of completing a foreclosure action of the property. For example, if an owner owes $400,000.00 to the lender but can only sell the house for $380,000.00, a short sale would allow ...

Can a lender approve a short sale?

Although every lender has its own rules, a lender will generally approve a short sale request, if all of the following conditions are met: The price requested by the owner for the short sale must be fair and represent the true market value of the property. The lender will verify the market value by obtaining its own appraisal of the property, ...

What to do if you are behind on your mortgage payments?

If you are behind in your mortgage payments and in danger of losing your home, you need to get advice from the right people. Many people say to contact your lender as soon as you fall behind in your mortgage payments. Theoretically, that is good advice.

Can a lender foreclose on a home?

In other words, although lenders do not want to foreclose a homeowner’s property , they also will not take much less than the property is worth. The owner must not have the financial means to pay the balance of the mortgage.

Can a short sale be approved?

If an owner has the means to pay the shortfall, the short sale will not be approved. A hardship letter and financial statement, as well as supporting financial information such as tax returns, pay stubs, W-2’s and bank statements will all be required. Fully executed contract of sale showing a ready, willing and able buyer.

Alan James Brinkmeier

You need a lawyer.#N#A very solid approach is to talk to friends and trusted persons in your community who have experienced a similar problem you face to get ideas about lawyers. Ask them who their lawyers were and how they rated the lawyer.

Andrew Daniel Myers

Yes, you most certainly do need an attorney to represent you. Are there other liens on the property other than the mortgage that is held by the company that has negotiated the "short sale"? What are the others doing about the sale and their liens? Are there tax liens...