A short sale is
when your lender agrees to accept an amount “short” of what is owed on a home
loan in a sale transaction. The homeowner/borrower is then released from that
obligation with or without a deficiency amount that needs to be paid. A short
sale of your home is a complicated legal transaction. If you are considering a
short sale for your property you are already in a compromised a vulnerable position.
While real estate agents are trained to sell and market
property most are unprepared for, uneducated on and just plain unqualified to
negotiate one of the largest debts a homeowner may ever have. Most real estate
agents who are “certified” short sales specialists have only taken a 3 hour
course to get that certification. The implications of a short sale for a
homeowner are financial, legal, and quite typically, very emotional. It is
beyond the scope of a real estate agent’s job and training to understand all the
current and future complexities and implications of a short sale for a
homeowner. In fact, A real estate agent has an inherent conflict of interest in
the transaction. The real estate agent works on a commission basis if and when
the property sells. The real estate agent is unlikely to know of or offer
alternatives to a short sale even if it is in the best interest of the
homeowner. Sometimes a short sale is just not the best option.
Some real estate agents offer to homeowners the services of
a short sale company that they recommend or with whom they are affiliated. Some
of these companies are run by or simply owned by an attorney. Homeowners may
also be directly solicited by short sale companies. Once the company is engaged,
the homeowner is typically steered to certain real estate agents, if they do
not already have one. However, I strongly caution homeowners and borrowers from
using these short sale company services. Sometimes these short sale companies
are in reality hired to work for the Real Estate Broker or agent and not the
homeowner. The negotiator may be AN attorney, but they are NOT THE HOMEOWNER’S
attorney. The short sale company typically
makes no attempt to negotiate in the best interest of the homeowner, but rather
only works to get a deal to close so that it and the agent can collect their
fees. Even worse, some of the companies have “investors” who are part of the
transaction. The investor buys the property at the lowest price, which makes
the homeowner’s deficiency the largest. No attempt is made to negotiate the
best financial and legal outcome for the homeowner. No attempt is made to
negotiate in the best interest of the homeowner.
A homeowner’s attorney is obligated by the State Bar of
Michigan to work in your best legal and financial interest. A homeowner’s
attorney is not in a direct conflict of interest with the closing of the short
sale. A homeowner’s attorney is well prepared, highly educated and uniquely
qualified to negotiate the best possible outcome for your individual situation.
A homeowner’s attorney is willing to offer better alternatives to a short sale
as and when they are available.
If you own property
in Michigan or are a Michigan resident, we would like to be your attorney, please
contact The Law Offices of Leslie A. Butler, PLLC at leslie@lbutlerpllc.com or 734-707-8529
