Posted on Feb 3, 2012 in Roseville and Sacramento Short Sale FAQs

Hi, I’m Mark Peek here with Keller Williams Real Estate. We are Roseville and Sacramento’s short sale specialists. Today’s topic is attorneys offering to negotiate short sales for borrowers. Is this a good idea? My personal opinion is I don’t think it’s a good idea and I’ll tell you why. I have had a couple of these situations where borrowers have decided they want to hire an attorney’s office to negotiate the short sale because they feel it’s going to give them a better chance of getting a short sale approval.

Well let me tell you, this is the way it works. If you hire an attorney’s office, they are going to charge you an upfront fee. By the way, I don’t charge you any fees; the bank pays all of my fees for you. An attorney is going to charge you an upfront fee known as a retainer fee. It can be anywhere from $2,500 to $3,500. They typically have paralegals in the office that handle the files and submit the paperwork to the bank. They do no different than what I do. However what I find is when an attorney collects their upfront fee, the question is how soon are they going to do it? Is there any incentive for them to do this in a timelier manner than somebody who has incentive to close the deal and get paid at the end of the sale? Think about it, if you’re paid $3,000 and you get paid whether it works or not, how much time and effort would you put into it?

I’ve had a borrow recently hire a local attorney firm and unfortunately they have not been following up on the short sale with either lien holder and keeping the paperwork up to date and in the file. I followed up for the homeowner on her behalf to make sure that the attorney that they hired was doing the job that they said that they were going to for the retainer fee they charged her.

As a result I found out they were not doing the job they said they were. I continued to follow up and find missed items. At the end of the day she said she wished she had listened to me, she should have saved her money and had me negotiate the short sale for her.

So, if you are considering a short sale, and you’re considering having an attorney negotiate the short sale because it might give you a better chance at success, I can tell you that I don’t think so. There is no way that they are going to submit anything differently in the package that I am. Definitely contact me and let’s talk about your situation. Again, I’m Mark Peek with Keller Williams, Roseville and Sacramento’s short sale experts and I’m here to help. Hit the start here button at the top of the page and I’ll be happy to follow up with you immediately. Thank you.

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