why have an attorney in short sale

Here are 3 good reasons to hire a lawyer to negotiate a short sale: Release of 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.

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

Jan 19, 2021 · Your attorney will also be in charge of presenting your best interests during the negotiations with the lender. Having an attorney working on the short sale will give you peace of mind so that you can focus on getting the best deal possible. There are many reasons why a real estate attorney is needed during the short sale process.

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

Sep 09, 2020 · In the event that you should choose to list your home as a short sale, you should consider hiring a real estate lawyer to help navigate the process. While many people assume that they only need a real estate agent in this situation, there are some things that are outside their scope of practice.

What is a short sale in real estate?

Nov 17, 2021 · Why You Need to Hire a Lawyer to Negotiate a Short Sale . To cut to the chase, if you have legal questions, you need to hire a lawyer. It is against the law for a real estate agent who is not licensed to practice law to dispense legal advice. Even if the agent knows the answer to a legal question, a real estate agent is not allowed to tell you.

What are the pros and cons of a short sale?

You have probably defaulted on your loan if it has gotten to this point, so they no longer care much about keeping you as a customer. Whatever they have to do to get as much money as possible from the transaction, they will do. This is where having a good short sale lawyer comes in handy. He can be your advocate in these murky financial waters.

Can you negotiate short sale price?

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.

What are the consequences of a short sale?

In a short sale, the home sells for less than the seller owes, so the lender won't get all their money back. As a result, the original lender must agree to the sale. The seller must prove they have no other option.Jan 26, 2022

Do you still owe money after a short sale?

After the short sale is completed, your lender might call you or send letters stating that you still owe money. These letters could come from an attorney's office or a collection agency, and will demand that you pay off the deficiency. Your lender or the collector might even try to intimidate you into making payments.

How long does it take to settle 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.

Do short sales hurt your credit?

Yes. There is no way to avoid the damage a short sale does to your credit score. A short sale can knock as much as 160 points off your credit score, but the level of damage heavily depends on your credit standing before the short sale and how much your lender gets in the sale, among other things.Jul 8, 2021

Which of these lenders would be least likely to approve a short sale?

Which of these lenders would be least likely to approve a short sale? Junior lenders are least likely to approve a short sale. Because they're in a secondary position when it comes to liens against the property, they realize that there may not be any money left to pay them after the lender in first position is paid.

What is the benefit of a short sale?

Benefits of a Short Sale to a Home Buyer Primarily, the big benefit is the increased odds of getting the home for a reduced price, knowing that the house is in short sale mode, and that the owners, and likely even the bank or lender in many cases, will want to sell the home and get out from under the home loan.Jul 3, 2018

Can a bank come after you after foreclosure?

One form of default occurs when you don't make your mortgage payments. When this occurs, the bank may decide to pursue a foreclosure on the property. Depending upon the state, the bank may be able to come after you for money following the foreclosure.

How can I remove a short sale from my credit report?

Write a letter to the credit bureau at the address on the credit report. Point out that the short sale listed on your report does not belong to you (the information is inaccurate) or is outdated and should be removed. Or enter a dispute online (see Resources). Expect a response in about 30 days.

What happens if you can't cover a short?

You're asking what happens if you don't, or can't, and it rises quickly. They will automatically force you to buy to cover it. If that disadvantages you, they really don't care. They will use your brokerage account's assets.Jul 6, 2019

How long can a short sale last?

A conservative estimate should allow for six months, start-to-finish, on a short sale. While it's technically possible to complete in as little as two months, it's unlikely. As we've reiterated, your patience will be one of the most crucial aspects of your short sale timeline. Well, that and a great agent, of course!Aug 16, 2021

What happens if short seller can't cover GME?

Short sellers borrow shares that they believe will drop in price in order to buy them back after they fall. If they're wrong, they're forced to buy at a higher price, incurring a loss. More than 100% of GME stock was shorted by traders and investment funds.Jan 27, 2021