Almost all lawyers carry E and O insurance. (Errors and Omissions for those that don't know.) If an attorney gives you incorrect information, makes an error or an omission, while acting as your attorney, you can make a clain against the insurance.
My advice, find a new attorney and look into a settlement.
Jeffrey Sklar, Broker
Desert Valley Realty
I agree with Rockinrealtor. There is lots of misinformation provided when we work outside of our skill set. There are many Attorneys that dabble in real estate and have no clue about the idiosyncrasies involved in the processes. They may be book smart and process smart, but cannot make actions in the benefit of the property owner. Real Estate owned is typically treated just like any other property owned. YOU LOSE IT IN A BK.
The BK attorney's job is to rid a person of debt. The action used is to liquidate all of the belongings (with a few exceptions provided by federal law) and provide payment to the people that are owed money. You end up with no debt and a few personal items. This is plain and simple. The typical result of a BK is no debt, few assets, possible loss of job, no credit, no ability to use credit for a while and very limited funds. Do you still want to do a BK?
When thinking about a BK, you need to build a team of players to meet your needs. An attorney is great when laws are involved and court action is the result. I suggest you do not use a Realtor for legal action and you do not use an Attorney for real estate issues. Do not use a plumber if the lights do not work. Do not call an electrical if the drain does not let the water out of the tub.
In the BKs that I have been involved in, my team will save the principal property, and the equity, if the owner wants to keep it. Common knowledge is that anything sold during a BK will result in the funds going to the creditors. That is the reason that the assets are sold. A principal residence is no exception.
Trying to keep a principal residence is not an easy task. The attorneys I work with do not dabble in the real estate field. The rely upon the expertise of a Realtor to work in the real estate arena. They work to keep the property if the owner wants it.
In the event of an upside down property, or a property that has no equity, the property may still be kept by the owner if the owner wants it. We work out a payment plan to the Investor that is approved by the all parties including the Judge, Trustee, and all other participating parties.
Another option is that the property may be given back to the to the Investor to pay the amount owed. This is looked at as a foreclosure (DIL) for future credit applications. To avoid the foreclosure process during a BK, we work to take the property out of the BK and sell the property. This results in no foreclosure data reported to the credit agencies. This is a much better choice of action to avoid the foreclosure stigma.
Did your attorney chat with you about the tax implications when the BK is complete? You need to speak to your CPA immediately to mitigate any tax payments you may have as a result of the BK forgiveness.
I wish you wellness and prosperity in the upcoming year.
Contact me for more details and options when working with BK attorneys and the prevention of a foreclosure on your credit history.
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Please contact me immediately if you know a person that cannot make their mortgage payments. I will work with them to avoid foreclosure or bankruptcy at no charge or fees to them.
Steven Goldman, CRS
Certified Distressed Property Expert (CDPE)
Certified Default Advocate (CDAT)
Certified Short Sale Professional (CSP)
Certified Probate Real Estate Specialist (CPRES)
GRI, ABR, SRES, CNHS, PM, CCI
Realty One Group
10750 W. Charleston #180
Las Vegas, NV 89135
On a side note if you had $200k equity why is a short sale even being discussed?
The Adams Team at
Rothwell Gornt Companies
I am sorry to hear of your situation. I would find an Attorney that can dig into the paticulars of your situation. It is a tough situation because Attorneys don 't usually go against other Attorneys. You can file a Bar Complaint. Google the Attorney's name and google his phone number. Try to look at his record. Has he had complaints against him? Is there chatter on the Internet about him? Sometimes it is amazing what you can find. I would make lots of noise once I had some facts under my belt. Contact the BK Trustee. These people are accessible. You have to be persistent. When I have an issue with a company or especially banks I google their Corperate Govenance and find their officers. Then track down email contacts and phone numbers and I usually start at the Senior Vice Presidents office and work my way up to the CEO. Good Luck. Find a competent Attorney! file a Bar Complaint and do your research. Hope I have helped.