“PSSST… HEY MACK, YOU DON’T NEED A LAWYER TO DO A SHORT SALE AND I KNOW WHERE YOU CAN GET SOME SAFE BACK ALLEY LEGAL ADVICE REGARDING YOUR MORTGAGE.”

These are likely some of the same folks who proudly claim to have closed hundreds of Short Sales with a 95% or better List to Close ratio – while the MLS data tells a drastically different story! Everyone’s so called “results” are right on the internet!  These folks are either ignorant – or, intentionally doing what they do with the goal of making money on the unsuspecting homeowners. Makes a lot of sense since the only thing selling these days are foreclosures and short sales.  Both are bad!

If a consumer is filing bankruptcy as a last resort should they do a short sale?

This is a legal question but there are Real Estate professionals assisting consumers and answering questions like this all over the Internet.

I am seeing a flood of legal advice and continuous posts on the Internet by Real Estate Brokers and agents, advising consumers what to do if they are behind in their payments. This crosses the ethics line and is illegal by practicing law without a licence. I cannot believe the “broad brush statements” being made that are confusing consumers more everyday.

So many Real Estate Agents are telling consumers the following:

1. Do a short sale instead of a foreclosure – (without looking into their other debt. For example, credit cards and second mortgage leins)

2. Stop making mortgage payments so you can qualify for a HAFA short sale.

3. You can live in your home for 2 years or more!

4. Don’t hire and pay an attorney to do a short sale. Your mortgage will be a thing of the past when it’s all over.

5. The lender will not seek a deficiency judgment because they are just happy to get “some” of the money back they lent to you.

6. The Lender has to accept a short sale offer.

7. You will recieve CASH after the closing.

8. Your home does not have to be owner occupied to qualify for a HAFA short sale.

9. You’re not responsible for the Brokers sales commission, the bank pays it! (I’d love to see that put in writing)

10. Sure,its ok to strip the house before you go.

This contract advice is being given to Joe Public on forums like Trulia, Zillow and personal blogs. Why?

I thought Real Estate Agents were not supposed to give legal advice? It’s getting very scary out there for us all due to the fact that agents are giving advice out of their expertise!  There are approximately 7 steps to consider before pursuing a short sale. A short sale is the very last step after all else fails. But if you are a Realtor who makes their living selling homes, it’s sold and packaged as the “First Step.”

One thing is for sure, Real Estate professionals are leaving the door wide open for more lawsuits by giving advice to consumers that would be better dealt with by a legal professional!

Is it ok in desperate times to do desperate things to feed our kids at the expense of your neighbors foreclosure hardship?

We understand that times are tough and it’s not the best time to be a realtor, but this unprofessional and wreckless behavior is what caused the mortgage industry to collapse. Realtors sell property. Don’t get us wrong, we have worked with the good the bad and the ugly and there are some very well trained Realtors with with excellent reputations out there. The good ones know not to give legal advise. Leave the Law to the Lawyers