Recently our law firm has been retained by numerous clients who are being sued by their former lender after completing a short sale of their homes. This is called a deficiency judgment action. In other words, the lender sues the homeowner for the difference between the amount owed under the loan and the amount for which the short sale was approved. In every one of these cases, the homeowner was not represented by an attorney during the short sale process, but instead, chose to allow a realtor to manage the entire process, including the negotiation of the deficiency. Most realtors, however, are solely interested in “closing the deal” and receiving their commission, not in the most complete and favorable outcome for the seller. Here are three reasons why you should hire a law firm to complete a successful short sale.
The principal reason to hire a law firm to handle a short sale is to avoid any deficiency judgment action by your lender after the short sale is completed. A qualified law firm, like the Arcia Law Office, regularly negotiates “deficiency waivers” with lenders, and demands that the proper language and releases be included in the short sale approval letter in order to ensure that our clients do not have to contend with the costly defense of a deficiency action or have to file bankruptcy in the future.
It is no secret that lenders behave differently when a law firm is involved in the short sale negotiation than when dealing with a realtor. Lender representatives know that an attorney understands the law and its implications for his/her client, and will not simply accept as true any unwritten promises or suggestions by the lender’s short sale negotiator. The end result of a short sale negotiation using a law firm is that the terms of the deal are more clearly outlined with no room by the lender to later change the terms.
The short sale process may be stalled or blocked altogether if issues arise with any liens or title defects on the property being sold. As a licensed title agent with Chicago Title, the Arcia Law Office can quickly identify any title issues delaying a short sale, order a lien search, seek an underwriter title opinion, and clear any title defects in order to promptly complete most short sales. Our law firm also conducts the actual closing in order to ensure that our clients’ rights are fully protected from start to finish during the short sale process.
If you are behind in your mortgage payments, your house is under value market a short sale might be a solution, fill out our Free Consultation Form or Call Us Now! 954.362.5830. Our Firm guarantee is that each new client will meet with an attorney, not with a secretary or paralegal. We welcome the opportunity to meet with you and evaluate your case free of charge.
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