Usually this service is free to the client – The lender generally pays the seller’s attorney fees
A ‘short sale‘ happens when a client owes more money on their house than the property could receive if sold. A short sale is initiated by a client when they do not wish to file a bankruptcy and the debt associated with their home is the main cause of the client’s financial woes. This is not an advisable option when the client has many additional debts, rather it is chosen by a client when the house is the primary source of financial concern.
RISK: Often times a homeowner interested in short selling their house will contact a realtor without the aid of an attorney experienced in short sale negotiations. This can prove to be extremely risky, since realtors rarely understand or acknowledge the following risks the short sale seller can face:
- Deficiency Judgment – Even though the lender participates in the short sale process does not mean they won’t turn around and file a lawsuit against the short sale seller once the transaction is complete. Realtors frequently do not protect the legal interests of the seller, either because they do not fully understand the legal issues involved OR because they simply do not acknowledge the risk to the seller. Our firm WILL NOT allow our clients to be exposed to this risk. Short sales negotiated by our firm will clearly and expressly waive the lender’s ability to file a subsequent lawsuit against the seller.
- Tax Consequences – Serious tax consequences can result from a short sale. Realtors, without the aid of an attorney, rarely understand the risks, nor do they take steps to protect the seller. Our firm will NEVER allow a client to be exposed to these risks.
The short sale process begins by listing the house for sale with a realtor. Our law firm works closely with a number of realtors across the country and can provide you with a realtor you feel comfortable with. Once the house is listed and an offer has been made by a prospective buyer, our firm will begin negotiating with your lender, whereby our focus will be to achieve the following:
- Protect our client (the seller) from a lawsuit initiated by the lender
- Protect our client from serious tax consequences associated with the short sale
Once the negotiations are complete and the seller’s legal rights have been protected, the house is sold to the new owner and, in most cases, the client has not had to pay a penny toward legal fees!