short sale offer repercussion

Asked by Oliver, Los Angeles, CA Wed Nov 2, 2011

10 months ago i made an offer to buy a short sale property. i put 10k in escrow, paid for an engeneer's report, and was told by my attorney to pay for an appraisal when the seller's bank came with a counter offer which i accepted. a month later i learned the the seller had a second loan on the property, and the second one did not approve the short sale. the deal fell through. my attorney now is charging me $500 for working on my file and $350 for the title search. can they do it? somebody plese help
thanks
oliver

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7
Dan Tabit, Agent, Issaquah, WA
Wed Nov 2, 2011
Oliver,
You have discovered something valuable. Attorney's charge for the work they do, regardless of the outcome, guilty or innocent, sale or no sale. We as agents typically get paid for results, the successful sale of a home. Many of us put countless hours into deals that never come together, sometimes for reasons we can or should anticipate, other times for reasons we couldn't.
What is unfortunate is that the attorney didn't make this clear to you upfront. Chances are that you did sign some agreement for representation, but didn't anticipate this outcome. Review any paperwork you have on this and decide how you intend to proceed on your next transaction.
One last thought, if your attorney did a Title search and missed the second mortgage, you might use this to challenge that portion of the bill.
1 vote
, ,
Wed Nov 2, 2011
On the next transaction find a good realtor to look after your position. I have closed thousands of tranactions, not one of them was structured by an attorney. You might lodge a complaint with the local bar association and let them know your attorney/agent told you to pay for an appraisal before he reviewed the title. I bet he didn't do the title work himself.

Hope this is helpful, good luck,
0 votes
Terry McCarl…, Agent, Cape Coral, FL
Wed Nov 2, 2011
Oliver summed it up well...it is a shame you weren't informed of the second loan from the beginning.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Wed Nov 2, 2011
You hired a lawyer, they don't work cheap or for free unlike us Realtors who often work for nothing.
0 votes
Marc White, Agent, Charlotte, NC
Wed Nov 2, 2011
Unfortunately, they can. You need to explain to them your situation and keep your fingers crossed that they will be nice...but don’t hold your breath. They are likely to charge the fee anyway, but it does not hurt to ask. Your agent should have advised you in the proper course of action with this deal, things like this comes with the territory of Short Sales.
0 votes
Carol Perdew, Agent, Manteca, CA
Wed Nov 2, 2011
Oliver,

Are you being represented by a real estate agent? Why have hired an attorney to represent you in buying a home. Attorneys are not usually utilized in home sales in California. Title Companys handle the title search and tax prorations in California. When your real estate agent is assisting you with the help of title and escrow companies there typically are no extra charges to work with a second in a short sale transaction.

Thanks,
Carol Perdew
Prudential California Realty
(209) 239-7979
Carol@PerdewHomes.com
DRE 985176
0 votes
Ron Thomas, Agent, Fresno, CA
Wed Nov 2, 2011
Yes, they can.

Why did you employ an Attorney? This is California.

Now, start over.

Good luck and may God bless
0 votes
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