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Ryon S Gray, Real Estate Pro in South Lake Tahoe, CA

When doing a short sale for a homeowner, do most agents recommend a CPA and attorney to their clients, or is this a waste of clients' money?

Asked by Ryon S Gray, South Lake Tahoe, CA Fri Mar 30, 2012

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I think it is a great idea to recommend the short sale homeowners to talk with a CPA and a good (short sale familiar - and some attorneys are not familiar) attorney. I also give them preliminary info on different options available to them (from my CDPE designation materials) and recommend a very good book "Stop Foreclosure Now". This prepares my clients to ask the right question of the tax and law professionals. Many attorneys won't charge for the consult and negotiations, as long as they are doing the closing on the transaction.

Irina Karan, CDPE
Beachfront Realty, Inc.
305-904-2355
IrinaKaran@gmail.com
0 votes Thank Flag Link Sat Mar 31, 2012
We have several "distressed" sale attorneys that we recommend and wouldn't consider doing a short sale without their expertise. There may be a fee associated with attorney services but in the long run, people generally feel the service is worth it.
0 votes Thank Flag Link Sat Mar 31, 2012
I always recommend they speak to an attorney as well as their accountant so they know all of their options beforehand.
0 votes Thank Flag Link Sat Mar 31, 2012
I always recommend for a seller to get legal and tax advice, we have a form in our office that the seller has to sign saying that we suggested this information.
0 votes Thank Flag Link Fri Mar 30, 2012
When representing a buyer or seller in a short sale, I always require they be represented by an attorney experienced in both real estate and short sales, and encourage them to get advice from a qualified tax professional with respect to the tax implications.
0 votes Thank Flag Link Fri Mar 30, 2012
I always recommend it, and have a form that they initial and sign acknowledging that I have recommended they speak to both about the legal and tax consequences.
0 votes Thank Flag Link Fri Mar 30, 2012
I always recommend, they don't all take my advice. Agents, unless they are also tax pro's or attorneys, are not qualified to give advice regarding the tax, legal or financial impacts of a short sale. Not considering these dimiensions of a short sale is always a big mistake.
0 votes Thank Flag Link Fri Mar 30, 2012
I always recommend speaking to a real estate attorney. It is wise for the clients considering a short sale to know of all possible situations . I certainly think that recommending an attorney or CPA is wise. It takes a few seconds to hand a card and make note that you did that. It is up to them to decide what they want to do. I hope that helps.
0 votes Thank Flag Link Fri Mar 30, 2012
Lots of sellers need the advice of their tax advisor when doing a short sale - this is extremely important when they own investment property as it prepares them ahead of time of their possible tax liability after the sale. Attorneys can also give them good advice based on their individual circumstances of what is the best route for them to go which sometimes could mean bankrupcy.

Of course real estate agents can not give legal advice or tax advice unless they are licensed in those fields so we do refer them to the experts.
0 votes Thank Flag Link Fri Mar 30, 2012
I don't know why a CPA would be involved. The seller could ask their tax adviser to get involved at tax time but basically it is the seller walking away from the house that they are not making payments on currently. You can't just say, "I want to sell short" and do it. You must qualify for a short sale with the lender and that means you need a hardship and be behind in payments. You can't have any other assets or the bank will say no to the short sale and being underwater is not a hardship. A lawyer would be good but mainly to ask if the bank could come after you, after the short sale, for the deficiency the bank has lost in the sale.
0 votes Thank Flag Link Fri Mar 30, 2012
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