Guest Post from a Highly Respected Short Sale Colleague

It’s not often that we reprint in whole another blogger’s post.  But Attorney Elizabeth Kayser is a part of our loose affiliation of attorneys who collaborate to make us all better at doing battle with stubborn lenders.   This post from Elizabeth, though written based on her experience and law practice which spans several states in the Midwest, is a very accurate and applicable summary of why you need an experienced short sale attorney if you are selling your home in Virginia and you owe your mortgage lender more than the likely sales price of your home!   Also, if you are a buyer in Virginia, and you are considering whether to make an offer on a property that will require a short sale, you will also enjoy a much smoother and more predictable process from contract to closing if you choose a short sale property which sets forth in the listing that an experienced short sale attorney is handling the short sale for the seller.  Enjoy Elizabeth’s Blog/Article:   


When should an attorney get involved?

A qualified attorney should be involved in the transaction immediately! We receive numerous Sales Agreements from real estate agents who have spent a lot of time and money on their listing only to become frustrated when we inform them that the transaction cannot be negotiated!   Wouldn’t it be nice to find out if the deal will go through before you even take a listing and spend your precious time and hard earned money?  Now you can, by referring the client to this firm.  The reason you hear horror stories of Short Sales taking forever only to have your commission cut is because the real estate agent failed to qualify the transaction through an experienced attorney.  Do not end up like one of the daily agents we speak to who has wasted their time and money on a hopeless sale!  There is no consultation fee whatsoever; we’ll speak to whomever you’d like in order to ensure you concentrate your effort towards worthy endeavors.

A real estate agent cannot give legal advice as to deficiency judgments or if there will be a complete release of liability or pending foreclosures, stopping foreclosures, interpreting bank approval letters, tax advice, otherwise the agent begins to negotiate legal terms which result in a legal settlement that is binding against the homeowner. . . and can put the homeowner at grave risk. . . which is the practice of law.  Giving advice as to legal issues from a non-attorney is the Unauthorized Practice of Law, a Class 1 misdemeanor.  Furthermore, ones Errors and Omissions policy would typically exclude any unauthorized practice of law.


Here are a few things to consider:

  • You cannot navigate, negotiate and advise a Seller in a short sale without giving legal advice as to deficiency, deficiency laws, tax implications, foreclosure laws/proceedings, and sometimes bankruptcy law and proceedings, and divorce proceedings and attorneys.
  • A law firm handles all of these legal issues and legal interpretation of bank documents.
  • A law firm can better save a short sale if a foreclosure sale is imminent.
  • A law firm can navigate bankruptcy proceedings and still get the short sale done.
  • A law firm provides a legal opinion as to legal bank documents/approvals, deficiency issues, promissory notes, cash contributions, and tax implications.
  • As an agent, your job is to make transactions, not spend endless hours negotiating with a bank bureaucracy trying to hols together a deal.Let us do that.
  • We can ensure you receive your maximum commission.
  • We can get your deal closed many times without having to pay us a dime from your full commission.

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