If your home is underwater, you may be wondering if you should use a short sale negotiator.
If your home is currently in foreclosure the last thing you need is someone exploiting an already bad situation, yet that is exactly what some so-called short sale negotiators do to vulnerable home owners. A short sale negotiator is not necessarily a real estate expert. Many are simply a commissioned sales person. For every short sale that they generate they receive a fee regardless of whether the deal is good for the seller. This leads to problems.
For a bit more about this issue, read this article or contact me here.
Short Sale Negotiators proposal sounds great
I have been approached by people who have gone through the short sale process with a negotiator and are shocked when the lender pursues them for the balance due on the loan.
Here’s how it goes down. You owe $100,000 to a lender but your home is only worth $70,000. You put your home on the market as a short sale. You are contacted by a short sale negotiator who tells you that they will cut through all of the red tape with the bank, handle the paperwork, and bring the deal to a close. You find a buyer for your home for $50,000 and the short sale negotiator gets the bank to accept the deal. You are elated that you can walk away from the home.
Reality starts to set in
The bank presents you with papers that you don’t understand. The short sale negotiator, who is not an attorney, tells you that the papers are no big deal. You should just sign them. You sign the papers and a year later the lender is garnishing your wages for the $50,000 difference between what you owed and what the property sold for. You contact me in a panic and say that you sold the property via short sale. The bank is illegally trying to collect from you. I read the papers, and right there in black and white it says that the bank agrees to the short sale without waiving any of its rights under the note. What does that mean? You owe the bank $50,000. You tell me that you asked the short sale negotiator about that and were told that the banks never go after the seller for the balance due on the loan. You relied on the negotiator who was not an attorney and gave who you erroneous information. The negotiator is long gone, having collected his or her commission and has moved on to the next victim.
Real estate attorneys offer protection
A short sale negotiator is no substitute for an experienced attorney. Some short sale negotiators are legitimate and provide a valuable service, but in Illinois a license is not required, so how will you know whether the person who approached you is up for the challenge?
If you are approached by a short sale negotiator you still need an attorney. Contact Chicago area real estate attorney Rhonda Stuart and I will help you understand what you are agreeing to.
Finding a Chicago area real estate attorney for a short sale
If you want the best result in foreclosure or short sale related real estate transaction you need an experienced attorney. Contact real estate attorney Rhonda Stuart and I’ll make sure you get the best results.
I practice in the following counties, and others:
- Cook County
- DuPage County
- Lake County
- Will County
- Kane County
- Kendall County
I practice in the following cities, and others:
- Oak Park
- Oak Brook