Using An Attorney's Help When Doing A Short Sale
My attorney is recommending that he put together a purchase contract, with some outs and contingencies for us, using the standard Colorado Contract to Buy and Sell Real Estate. He says that he'll just flat fee us - a fee of somewhere between $1500 and $2000! Seems like it's a pretty steep fee, especially when you consider that it's just the normal contract, one that I've already used when I bought my first house. He also says that this will be pretty standard for every deal we do. Sounds like a gouge to me. Seems like it may be OK if he were to do a sample form for the first one, that we could then use for all subsequent deals. He's advising against this. I feel like I'm getting screwed. Think so? :-x [ Edited by adambeal1 on Date 04/08/2004 ]
yep. find a new attny
I second that...find a new attorney. Just use the contract that you've been using. You don't need any outs.
I'm not an attorney-don't even play one on TV. He's a little on the pricey side by say 1K to 2K. But, hey he's got to eat. I'd suggest that you politely thank him, leave, and don't turn your back on him.
Sounds like the same attorney I know who got a Broker's license so he could kill his own deals.
"land shark" get out the harpoon! politely run from this bamboozling.......ggod luck....kenmax
I've done one or two (OK two) short sales and never needed an attorney at all.
The hard part is getting through the bank loss-mitigation machinery.
Maybe, in your state, your need an attorney to close.
Sorry about that but his costs are quite steep no matter where you are.
Just saw that you're in CO too.
You don't need an attorney at all for this deal.
Once again, work out the SS with the bank. Then just do what their realtor requires.
Everyone's advice was well taken - we're going to dump him. Thx. :-D
Don't be pennywise but pound foolish. Actually, I think it could be money well spent....
If the $2000 includes negotiation, it's not bad at all.
Money is a motivator. Think about it. In addition to expediting the negotiation process, this attorney might be able to turn you on to some as of yet unrealized opportunities from within his own network.
Finding an attorney willing to include shorts in his practice is gold.
Think long term.
You are writing in the SS forum. So what does an attorney charging you for a P&S contract have to do with a SS. Trying to find out if there is more here than you are saying.
Is the attorney simply completing a contract for you, is he completeing the SS package, is he negotiating the SS? Please explain.
Brenda
I'd beg to differ on the $2k being worth the money. I'm pretty sure there's no way that this guy can guarantee a successful short sale, so in essence you are paying him $2k to try a short sale. I would think this could add up pretty quick to a dent in your pocketbook with no success. Even worse, you could have done the entire thing without a cost to you except for your time. Now if he's saying you can pay him $2k after a successful short sale that's an entirely different ballgame and probably worth the money.
So to sum it up - we need more specifics.
Ryan J. Schnabel
If you are Shorting on the amount they owe, The Homeowner would have to bring the difference in Money to closing and Pay You that amount of the difference, in order to Make you perform on your Purchase Offer.
Ahhhh ? Otherwise, there is no recourse against you, for not getting everything appoved by the Bank, etc.
It's up to the Bank, if they want to take $9, for $11.50 owed, not counting interest and penalties.
If the Bank approves and you don't buy, you don't buy.
When, Realtor's have demanded a guarentee on the purchase offer, that the Bank will Approve it, and the house will sale, ( to get his commission, - with his Broker hanging on his back ), it's like, " I don't know how many people are knocking down their door to help them out of foreclosure and/or bankruptcy, but that's what's happening, unless I TRY."
W'e're Trying to help.
And, there are needs for plenty of CYA, but not in the Purchase Contract, other than, Contingent on the Approval of Short, from the Bank, or whoever.
On that note, please don't put, Contingent on the Bank waiveing Deficiency. They may not, and you two may still agree to proceed, but that in there gives the Homeowner something to come back on you with.
And, they'll try anything. On there own ? How, about this Attorney talking them into it. He seems real nice.
So, get all you can on CYA. Computer software to record telephone conversations. A tapeplayer, with you, with mic cord and headphone set for your cell phone disguised. If you don't get the family and friends on tape, have them sign a Disclosure, also. Put your Video aimed at meetings with women, at your place, that you played Justin and Janet with, etc., etc.
In fact, I could use that $1,500 to $2,000 on my own contigencies.
You'll be able to hire someone to do this when you get to it. Just get to it then.
You're smart enough to Question Dr. Strangelove, so you'll be all right, ( as you insist to be - the world is a vampire - get into Trusts and LLC's and Corperations, although you probably already are, as soon as possible - knowledge wise, then, with the POWER of the PEN ! ! )
Thanks, Alan
:-o
The $1500 to $2000 does not include negotiation. Only paperwork and advice. Sounds steep to me. And he's saying that it would cost this each short sale or similar. It doesn't seem to me, in all of my reading, that you really need an attorney to run the short sale for you - that should be easily done on one's own.
run!
Adambeal, The attorney wants to generate cash flow with drawing the contracts.
The main "need" you have for him to negociate, is for him to make more money, BUT More Importantly,
To Learn all your Techniques and Contacts at the Banks AND, "Where do you Find Properties like this ?" ( you're answer is, "it's mostly attorney's like yourself that send them to me, ya got some ?" )
and, as with a Realtor, turn his friends on, to give the Bank a little more money, than the two of you have "Negociated", at your expence.
Oh yeah, don't forget, there are a Battery of Negociators, right here, if you ask, they've been known to like Doing Deals.
Alan
$1500 to $2000 just for a boilerplate contract with a few lines of restrictive language?
Shyster.