Replies to This Discussion

Permalink Reply by Jeff Payne on October 5, 2010 at 12:42pm

Donna,
Just to play devils advocate... Why would Chase pay for your sellers attorney fees? Not quite understanding why they would. That would be like me suing someone and asking them to pay for my attorney/

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Permalink Reply by Donna Paul on October 5, 2010 at 4:24pm

Hi Jeff,

Thanks for your input. The Seller needs an attorney to represent him on the sale however the seller doesn't have any money due to the fact that he couldnt pay his mortgage since he lost of his job.
Here in NY the attorney's present the seller on short sale for other banks.
I was wondering if this is a new method for all bank or is this only for Chase Bank. Do you know if it's true.

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Permalink Reply by Jeff Payne on October 5, 2010 at 5:18pm

I think that you need to reword it from attorney fees to closing fees. I assume that the attorney gets paid to the closing and on the HUD it should be under closing fees. How much does the attorney charge?

Donna Paul said:

Hi Jeff,

Thanks for your input. The Seller needs an attorney to represent him on the sale however the seller doesn't have any money due to the fact that he couldnt pay his mortgage since he lost of his job.
Here in NY the attorney's present the seller on short sale for other banks.
I was wondering if this is a new method for all bank or is this only for Chase Bank. Do you know if it's true.

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Permalink Reply by Donna Paul on October 5, 2010 at 6:15pm

thanks Jeff, I will work on it and see if it will work on the HUD.

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Permalink Reply by Donna Paul on October 6, 2010 at 2:02pm

I check with them on that and it was stated that since my buyer is gettting a mortgage on this deal. The bank's attorney has to go on the closing side of the HUD. Does anyone has any idea how to get around this one.

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Permalink Reply by Steve Early on October 9, 2010 at 1:29pm

Donna:

I agree with Jeff - they are allowing your seller to get out from under a rock, releasing their lien on a property, and paying for your commission and other expenses so the transaction can happen. The closing can take place whether he is represented by counsel or not.

Now, from the seller's viewpoint - should he have an attorney? Heck yes! He will be asked to sign the Demand Notice and other documents which outline the terms of the short sale. Is he getting full debt forgiveness or are they reserving the right to pursue him for the balance? I would certainly want my attorney to read these documents over and tell me if I should sign them or not. That goes for any real estate transaction.

That said, if I was the lender I would say that is his problem. They are looking at what it takes to close this and they are not interested in whether or not he is represented by counsel. I don't see where they would have any incentive to pay for him to get an attorney.

That's what I think anyway.

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Permalink Reply by Donna Paul on October 9, 2010 at 8:16pm

thanks Steve,I didnt see it that way. After all my seller is getting $3000 from the bank and they have given him debt forgiveness too. He should pay but we can't force him. I think he may just refuse, so the attorney truned around and asked me for the fee.I guess that I've learned from this experience and do my own Short Sales since I am certified.

After, all of this now I'm not sure what will happen with my deal because the title company just found $23,000 worth of liens on the property so i'm not sure if the Bank will pay for this... so everything is still in the pending process.

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Permalink Reply by Jeff Payne on October 11, 2010 at 12:22pm

I thought that the attorney fees were for closing the deal. Now it looks like you used an attorney to negotiatoe the short sale? If that is the case, by all means you should pay the attorney if he did the short sale for you.
Just so I am clear, what did the attorney do?


Donna Paul said:

thanks Steve,I didnt see it that way. After all my seller is getting $3000 from the bank and they have given him debt forgiveness too. He should pay but we can't force him. I think he may just refuse, so the attorney truned around and asked me for the fee.I guess that I've learned from this experience and do my own Short Sales since I am certified.

After, all of this now I'm not sure what will happen with my deal because the title company just found $23,000 worth of liens on the property so i'm not sure if the Bank will pay for this... so everything is still in the pending process.

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