Hiring a realtor or real estate broker to negotiate a short sale could ruin your chances of avoiding a deficiency judgment.
Your goal is to avoid the potential for the lender to seek a deficiency judgment. The Realtor or real estate broker's goal is to sell the property and collect a commission, regardless of whether the Lender agrees to refrain from pursuing a deficiency judgment.
This is one of the most important reasons to be represented by an experienced Florida foreclosure defense attorney
. Be certain that your interests are being protected throughout the short sale process.
Most Realtors look out for their commission and do not care whether or not the homeowner avoids a deficiency judgment, and their brokerage agreements read accordingly. In fact, it has become prevalent for real estate brokers to include a short sale addendum in the real estate brokerage agreement that could have a negative impact on your best interest. For example, many short sale addenda to real estate brokerage agreements require that the client provide "ALL" information the Lender may request to evaluate whether or not the Lender with "approve" the short sale. The problem is that the Lender's request for financial information is a fishing expedition to determine whether or not the Lender will pursue a deficiency judgment. You don't want your agreement with your real estate broker to have a negative impact on your end goal of avoiding a deficiency judgment.
Therefore, it is important to have an experienced
Florida foreclosure defense attorney
review the agreement between you and your real estate agent or broker before you sign a real estate brokerage agreement.
Likewise, it is also important to have an experienced
Florida foreclosure defense attorney
review the offer to purchase or real estate purchase and sale agreement prior to signing. Many real estate brokers include a short sale addendum that doesn't include a provision that makes "closing" contingent upon the Lender's agreement to refrain from pursuing a deficiency judgment and cancel the promissory note. This is important because without such a provision, the short sale buyer/purchaser could sue to force the short sale seller to "close" where the Lender approves the short sale, but will not agree to refrain from pursuing a deficiency judgment and canceling the promissory note, the ultimate goal of many of our clients.
Every short sale situation is different. Therefore, you need advice that is specifically tailored to your individual situation. Because real estate brokerage agreements come in as many shapes and sizes as there are brokers, a thorough review of the proposed brokerage agreement is mandatory to ensure a consistent strategy to avoid a deficiency judgment. The Carman Law Firm, P.A. typically recommends the use of one of our addendums to the brokerage agreement, and one of our addendums to the purchase and sale contract.
Our firm's success, in avoiding deficiency judgments, typically comes from negotiating with the lender's attorneys inside the scope of aggressively defending a foreclosure suit. After gaining some leverage defending a foreclosure suit, where the lenders own attorney advises the lender to take a certain course of action, the lender is much more likely to listen.
One thing I would like to mention here is that a large portion of the leverage that borrowers possess is their ownership of the property and their ability to deed the property to a person who is willing to pay the lender something for the property in a short sale transaction. Ownership of the property gives standing to defend a foreclosure suit. Following a foreclosure or short sale, this leverage is gone. The borrower should utilize such leverage while it's available, prior to being defaulted in foreclosure suit.
Finally, although there is no guarantee of negotiating a short sale with a full release of deficiency, your success rate will increase considerably when you engage a competent Florida Foreclosure Defense Attorney.
If you are facing foreclosure or considering a short sale, you should consult with an experienced Florida Foreclosure Defense Lawyer not your real estate agent. These are legal matters, and without a specific written agreement between you and your lender, you are exposing yourself to the possibility of being slapped with a huge judgment for the outstanding mortgage debt, the difference between what your home sold for and the amount that you owe on your mortgage.
Get legal advice, understand your rights, and know your options!