After, what is now 4 years of this real estate and mortgage crisis, we still have this question? From the Real Estate Community? Rarely do I come across a real estate agent that does not have a preferred Loan Officer, Home Inspector, Title Company etc etc. Why is it, you don’t have your preferred Mortgage Law Attorney?
This is NOT a real estate problem. It is a debt problem. You have a client contemplating a breach of contract on a debt obligation. NO Real Estate Agent is licensed to give advice on this topic and it would be a breach of the standard of care you owe your client to do so. You wouldn’t dream of selling a home without a home inspection, Title Report, Mortgage Approval. Why would you ever list a home for short sale without a review by competent legal counsel of their legal obligations, first?
As to the statement from Realtors about Arizona being an anti deficiency state. We need to stop saying that. I will offer that Arizona is one of 7 states that has anti deficiency protection and has the strongest of those anti deficiency statutes. We have two of those statutes, but the problem is that they apply to a narrow set of rules that DO NOT APPLY to short sales. They apply to Trustee Sales. Yes, we have Case Law that further strengthens deficiency protection post short sale, but the only venue you get to argue that is in Court! How many of your clients, post short sale, can afford to go to court?
You cannot imagine what it is like to have a family in your office emptying a box of Kleenex sharing with me the story of how that previous weekend they were served with a law suit by their previous lender for deficiency post short sale. Every case has one common element, the short sale was done without legal counsel and they closed a short sale with short sale approvals that had inadequate release language. First thing out of their mouths are “My agent told me were are an anti deficiency state” of course the next words our of their mouth are “Can I sue my agent”
To all Agents. If you don’t have a good mortgage law attorney, get one. If you have one, make sure they put their opinions in writing. It takes only $375 and ten sheets of paper to sue anyone.
[...] about your options. We here at The Phoenix Agents strongly recommend you retain an attorney. As Kevin Hardin of Thomson Conant law firm says, “you don’t have a real estate problem, you have a debt [...]