Lawyer Tells My Shorst Sale Client To Kill The Deal.
here is my dilema, tenant called and said she had three homes that the banks were willing to short sale. then she visited a attorney who told her to just walk away and let them foreclose her rentals so they would not come after her primary www.residence.the banks of her rentals are not the same as her primary home. she was told to file bankruptcy in stead. how can i convince her that the advice she was given was wrong? the houses are great short sale deals any advice.
It sounds like you should point out to her that the banks on the rentals and the banks on her house are different and that there would have to be a court judgment put in against her for her resident to be in jeopardy.
Tell her the Bankruptcy will be on her credit for 10 years and if you short sale mortgage companies rarely report any information about it if any.
Tell her that the bankruptcy is NOT a guaranteed process. If creditors see enough assets the courts may set aside the bankruptcy proceedings.
Lastly have her get a 2nd opinion from an attorney that does't do bankruptcy, but perhaps specialized in Real Estate Law.
Shadow,
Tell your client to get a second opinion. This is a serious issue with serious consequences. She should not just take the advice of one attorney.
thanks for your advice she sounds like the attorney convinced her?
"how can i convince her that the advice she was given was wrong?"
Unless you are privy to the entirety of the distressed Seller's financial and legal entanglements, you may be doing a disservice to the Seller by contradicting legal advice and, instead, pushing your own agenda. Unless you have a license to practice law, be very careful about the 'advice' you give to a distressed homeowner.
Having the Seller get a second opinion is OK, but it will probably just confirm the first lawyer's recommendation. Perhaps seeking a meeting with the Seller, and the Attorney would provide a forum for you to explain to her lawyer why his advice was wrong and why your recommendation to pursue preforeclosure short sale is the best course of action.
thanks shortsale pro i will set up a meeting with her.
Be prepared. The Homeowner will probably follow the lawyer's advice (diploma and license hanging on the wall, $250 per hour) so your job will be to convince the lawyer that what you propose is in his Client's best, financial interest. Be factual. Be specific. Leave any generalizations and emotionality at the door. Your professionalism will be perceived as strength.
If the stigma of bankruptcy is too much for the Homeowner... capitalize on that.
Take up too much time and the lawyer might simply back down.
I agree with SSP's caution. You have a vested interest and may not be seeing the full picture.
The BK advice does not sound wise. At the same time losing the three houses can be the end of it if the lenders do not come after her for any balances owed. In some circumstances they can not come after her depending on how they foreclose (the security for the loan is the only claim they can make unless there was fraud when she took out the loan).
I would think that avoiding a BK by doing a short sale is actually better for her. This is a general statement based on lack further details and assuming you are always on time with the payments.
She needs a second opinion. A joint meeting with the present attorney can be a great idea as he may not see what you are offing in the same way and needs to be enlightened as to the benefits.
John
[addsig]
Is is possible to try another direction?
Can you bring her 3 loans current and take them subject to? If she's willing to walk away via foreclosure, she probably won't want any equity. And this would avoid "dings" to her credit.