I asked the following questions about California short sale law to one of the lawyers at the California association Realtors. I look forward to the answer. Almost everyday I am challenged by a short sale issue which brings up a huge range of legal complications. I am concerned for all the non represented sellers out there. This is a difficult field and mistakes may costs the short seller 10s of thousands of dollars.
Questions
At what point in the process should the agent make sure the seller has legal advice. For instance - Can the Realtor review the financial paperwork to determine what to disclose to the bank? Can an agent legally represent the homeowner in Negotiations with the bank or review the paperwork with respect to deficiency and loan forgiveness?
How about when the NOD is filed - you know sellers are going to say the Realtor said don't worry we will sell the house - Shouldn't the agent make sure the seller has legal counsel at the time and NOD is filed?
In fact being that a short sale is really part of a set of pre-foreclosure options which have serious and diverse legal and financial impacts should a Realtor even list a short sale before the owner consults an attorney?
