It just gets better and better! My readers have been following along since last week as I’ve been posting my point-by-point responses to a letter written by a lawyer advising her client (the homeowner) against doing a Short Sale deal with a real estate investor. (Go here to read the full letter if you haven’t already). These blog posts have been a great learning opportunity, but remember they’re just the tip of the iceberg compared to what you’ll learn at my Short Sale Breakthrough 09 Event on July 27-29 in Orlando.
Anyway, here’s the sixth excerpt from the letter, followed by my response:
6. Based upon this and our belief that the failure to disclose the higher bidder would not comply with the lender’s expectations at closing, we are advising our clients to not enter into such arrangements with buyers.
You say that failure to disclose the higher bidder to the lender would cause you to advise against moving forward with the transaction. I would suggest you’ve forgotten some basics. Do you represent the lender or your client???
This is directly from the Rules of Professional Conduct of the Florida Bar (where this lawyer happens to practice):
“As a representative of clients . . . a lawyer provides a client with an informed understanding of the client’s legal rights and obligations and explains their practical implications. As an advocate, a lawyer zealously asserts the client’s position under the rules of the adversary system.”
Your job is to help your client figure out what is in their best interest, not what is in their lender’s best interest. Do I have to remind you that your client is in an adverse relationship with their lender? In Florida Judicial Foreclosure, the lender has actually sued your client! Your job it not to determine what is in the best interest of the lender, but rather what is in the best interest of YOUR CLIENT!
Since when is it your job to defend (what you might think is) the best interest of the lender — a lender who is adverse to your client? No, Ms. Attorney, here you are not only wrong, but you’ve forgotten who your client is and the duty of that the Rules of Professional Conduct impose upon you as an attorney.
As I discussed in an earlier post, the “highest” offer is not necessarily the “best” offer for your client. And remember… your client is the seller, not the lender!
P.S. Want more from where this came from? Join me at Short Sale Breakthrough 09 where I’ll help you build your dream team of pros who know what they’re actually talking about and prepare you to deal with those that don’t!
P.P.S Don’t forget to reserve your seat. We’re only 13 days away!
One Comment
Hope she took the bus home, cuz she just went to school!