Negotiating Short Sales - Do I need a Lawyer?

Question: Can I negotiate a short sale without a Lawyer or is it absolutely required/recommended?

Response: It is absolutely recommended that a homeowner who is considering a short sale to avoid foreclosure be represented by an experienced and zealous real estate attorney.  Without a doubt, your lender is going to use highly experienced attorneys and real estate specialists to protect and pursue their legal and financial interests.

You should consult an experienced real estate attorney before your mortgagor files the foreclosure action.  You could possibly negotiate a re-payment arrangement with your lender that would alleviate the need for a foreclosure action.  Your attorney also will be much more familiar than you with your jurisdiction’s laws and procedures governing short sales, and perhaps s/he will be able to identify and pursue defenses against the foreclosure action of which you may be unaware.

Additionally, an attorney will most likely be much more effective in negotiating with the lender and is more likely to get faster responses.  And, many homeowners who have opted not to get an attorney for a short sale have made costly mistakes that could have been avoided – for example, a short sale presents serious tax ramifications.  In sum, a short sale and potential foreclosure is an emotional and difficult situation for a homeowner and their family.  An experienced legal professional should be in place to help.

Additional Resources:

• Risks In Short Sales
• How A Short Sale Works

Answered by Jamilla Moore

Disclaimer:This site does not provide legal advice and users of this site should not interpret any of the information presented here as legal advice. The information provided merely conveys general information related to commonly asked legal questions. We are not a law firm and the employees responding to questions are not acting as your legal attorney. You should ultimately consult with a lawyer for your case.