Short Sale- Contact lawyer before bank approval??? (agent, accepted, property)

[Tops1234]

So I put an offer in on a short sale property last week and the seller accepted. My agent has advised me to go ahead and contact a lawyer. I find this strange because the bank still has not accepted, so why would I hire a lawyer, when I possibly could get rejected still from the bank??

Is this common practice or should I be skeptical??

Thanks

[bbronston]

Are you selecting the title/closer? If yes, then I guess it might be a good idea to at least get the file started (although I do that for my clients.) Sometimes the short sale lender comes back with an approval but they want the closing to take place in 2-3 weeks. Having the title company or attorney already started can make it easier for them to get everything done in time. Other than this, I agree with you. Until the lender gives their approval and terms, I would not want to spend any money.

[Tops1234]

what do you mean by title/closer?

I think it's weird, but I think I should call the attorney monday just to ask what he thinks...any other opinions?

[mmyk72]

In in the NE, so my situation may be different than people in other regions. I got a lawyer early on (right after sellers accepted). Mine charged me about $600 bucks (not sure about the exact $ because she billed me also for some previous work when I attempted to buy other places too). So far, she revised and finalized the P&S so that we're real clear about timing of the steps after bank approval comes, etc. For the 3 months that I'm into this deal so far, my lawyer emails the seller's attorney to get extensions sign, get updates from the seller attorney, etc. The seller's listing agent has been completely non-responsive, so in a way, my lawyer has done more to move things along by directly dealing with the seller's attorney that I otherwise would not have been able to do myself or by my Buyer's agent.

Initially, after signing the "Offer to Purchase" contract, the seller's want to submit a "P&S" to the bank along with the SS application. At that stage, I was concern too.... I'll have to hire a lawyer and then just wait and hope for the best (which I'm still doing). Seems to be gambling with good money since a lot of people say SS's don't materialize at the end. But in my case, it was kind of take it or leave it.

[bbronston]

Originally Posted by Tops1234

what do you mean by title/closer?

I think it's weird, but I think I should call the attorney monday just to ask what he thinks...any other opinions?

I am told that Florida does things differently than most other states so this may not apply. The parties, seller and buyer, agree thru the contract to have one or the other side select a closer (a person or company who generally holds the escrow, does the title search, the title insurance, lien search, etc., and makes sure that the buyer's lender's package is executed properly. They prepare the deed...all the things involved in trasnferring the property. It can be done by an attorney but most often is done by a title company here.

[rjrcm]

Advice given will depend on where you are located. Some states require attorneys to handle writing/reviewing contracts and facilitate closing, others don't. Here, we use a title company to handle escrow and closing. Sort of sounds like attorneys handle the closing process in your area.

[Tops1234]

Wow how confusing...im in CT by the way

[bbronston]

Don't let it confuse you. The actual steps might be done differently from place to place but the essence is going to be the same everywhere....I think! :-)

Anyway, trust your agent but don't be afraid to ask questions or pose what-ifs.

[Tops1234]

So I contacted a lawyer and right now the seller's legal people are working with mine to put together a contract to sign and send over to the bank. Now I'm assuming the waiting games begin?