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Old 10-05-2008, 12:42 AM
 
546 posts, read 2,092,930 times
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I’m looking into a short sale 2006 built townhome, per my understanding; a short sale is a owner trying to sell their property right before foreclosure when the bank takes over. This short sale property has a realtor in fact, the realtor is the owner’s sister in law. This realtor told me if I don’t bring in a buyer’s agent, I can instantly decrease 3-4% of set asking price by the bank. If not, and if I bring in a buyer’s agent, there’s no negotiation space and I need to offer the full bank’s asking price…the condition of the place is almost excellent. There’s no liens as far as I know from what the seller’s agent showed me. She will representing both me and her brother in law which in our state is legal. The owner has 2 outstanding mortgages. What it is is that the owner was paying for the mortgages for the other bother in law to live, but I guess something went on and the owner couldn't afford the mortgages …both brothers are this agent’s brother in law, so try get a feel if this isn't a good situation for me and might need to hire a lawyer in this case….

First, should I try to not bring in a realtor at all to decrease some of the fees to get a cheaper sale price? will it be ok in this short sale case?

Second, if you think I still should hire someone for this case, do I hire a a short sale real estate lawyer and a regular real estate agent who can handle short sale purchases? Many thanks.
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Old 10-05-2008, 08:04 AM
 
Location: Cary, NC
39,576 posts, read 68,632,262 times
Reputation: 40726
Quote:
Originally Posted by hueimo View Post
I’m looking into a short sale 2006 built townhome, per my understanding; a short sale is a owner trying to sell their property right before foreclosure when the bank takes over. This short sale property has a realtor in fact, the realtor is the owner’s sister in law. This realtor told me if I don’t bring in a buyer’s agent, I can instantly decrease 3-4% of set asking price by the bank. If not, and if I bring in a buyer’s agent, there’s no negotiation space and I need to offer the full bank’s asking price…the condition of the place is almost excellent. There’s no liens as far as I know from what the seller’s agent showed me. She will representing both me and her brother in law which in our state is legal. The owner has 2 outstanding mortgages. What it is is that the owner was paying for the mortgages for the other bother in law to live, but I guess something went on and the owner couldn't afford the mortgages …both brothers are this agent’s brother in law, so try get a feel if this isn't a good situation for me and might need to hire a lawyer in this case….

First, should I try to not bring in a realtor at all to decrease some of the fees to get a cheaper sale price? will it be ok in this short sale case?

Second, if you think I still should hire someone for this case, do I hire a a short sale real estate lawyer and a regular real estate agent who can handle short sale purchases? Many thanks.
You need representation, without any question.
You have a seller represented by a relative, making assertions of the condition of the property title that MUST be confirmed by your attorney.
You need to have representation regarding wording of the contract, and that is typically an attorney.
If in your state, a Realtor has access to standard forms for short sales, you may use them, but on the short sale you are well-advised to work with a real estate attorney.
It wouldn't necessarliy need to be a "short sale attorney," but should be one who regularly works real estate transactions.
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Old 10-05-2008, 11:39 AM
 
546 posts, read 2,092,930 times
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Quote:
Originally Posted by MikeJaquish View Post
You need representation, without any question.
You have a seller represented by a relative, making assertions of the condition of the property title that MUST be confirmed by your attorney.
You need to have representation regarding wording of the contract, and that is typically an attorney.
If in your state, a Realtor has access to standard forms for short sales, you may use them, but on the short sale you are well-advised to work with a real estate attorney.
It wouldn't necessarliy need to be a "short sale attorney," but should be one who regularly works real estate transactions.
thanks for your help.
What if I have a family member who used to be a real estate agent at ‘another state’ and could guide me through what to watch out for and will look over our contracts? He won’t be representing me officially, but just at the background telling me to watch out for what to ask…the forms are the standard real estate forms when submitting an offer which the seller’s agent will prepare, the place is sold as is and we have the right to withdraw our offer if we think there’s too much that needs to be fixed (this will all be on the forms), the seller’s agent already ran the title research, and we’ll do the same and the title company will handle that, we’ll also pay title insurance in case they’ve missed a lien. What’s the reason to hire another agent/attorney? Sorry, I have no experience in this area, so please bear with me with my silly questions. Thanks.
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Old 10-05-2008, 07:27 PM
 
Location: Virginia Beach, VA
2,124 posts, read 8,444,219 times
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hueimo, How much "experience" has your relative that USED to be an agent in another state HAVE? Short sales are funny things, and I would want representation. I agree with mike that at this point you may just want a real estate attorney watching over everything, and sure your relative will want to help you, but Short Sales are a little trickier....

and you would need a setttlement company / settlement attorney AnYWAY, so why not engage early and protect yourself?

shelly
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Old 10-05-2008, 11:28 PM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 35,917,461 times
Reputation: 2661
Note that this is all very sensitive to where you are. The Attorney advice is very appropriate where Attorneys are used. It is not appropriate where they are not. East vs west thing mostly.

In general short sale types are sellers agents in most places. I am not sure I even know what a buyers agent would do any differently on a short sale. ( Other than beg a lot)

You certainly need to be represented in this case by either a lawyer or an agent. You really don't want to trust someones SIL..with money on the table.
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Old 10-06-2008, 07:53 AM
 
Location: Palm Coast, Fl
2,249 posts, read 8,520,315 times
Reputation: 1007
From what I'm reading, and I don't know where you are, I would use the attorney. The main things that you will be watching out for are that the liens (mortgages) are property removed so you have clear title and that the original contract and bank addendums do not remove your protection to 'get out' if you need to. You want escape clauses. You also don't want to put too much, if any, money in escrow before the bank approves the deal. An attorney can do all of that.
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Old 10-06-2008, 09:50 AM
 
546 posts, read 2,092,930 times
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hello. thanks for all of your input. does anyone know if there's a 'legitimate' main national site to hunt for a short sale attorney for my case? I live in salt lake city, UT. thanks!
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Old 10-06-2008, 10:56 AM
 
Location: NW Las Vegas - Lone Mountain
15,756 posts, read 35,917,461 times
Reputation: 2661
Sorry guys...but now you can explain to the OP why there are likely no Attorney's in Salt Lake City who specialize in Short Sales and that he actually needs an agent not a lawyer.

You have to remember it is different in the west.
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Old 10-06-2008, 11:00 AM
 
Location: Cary, NC
39,576 posts, read 68,632,262 times
Reputation: 40726
Quote:
Originally Posted by MikeJaquish View Post
You need representation, without any question.
You have a seller represented by a relative, making assertions of the condition of the property title that MUST be confirmed by your attorney.
You need to have representation regarding wording of the contract, and that is typically an attorney.
If in your state, a Realtor has access to standard forms for short sales, you may use them, but on the short sale you are well-advised to work with a real estate attorney.
It wouldn't necessarliy need to be a "short sale attorney," but should be one who regularly works real estate transactions.
Quote:
Originally Posted by olecapt View Post
Sorry guys...but now you can explain to the OP why there are likely no Attorney's in Salt Lake City who specialize in Short Sales and that he actually needs an agent not a lawyer.

You have to remember it is different in the west.
Hey....
What can I say?
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Old 10-06-2008, 11:07 AM
 
Location: Central Texas
20,887 posts, read 41,642,890 times
Reputation: 24511
No real estate attorneys in Utah? Most deals are handled here in Texas by agents, but we DO have real estate attorneys available to handle the more complicated or troublesome issues.
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