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Is Anyone Getting Attorney Fees Approved?

I had asked this question a while back and got great feedback. Would like to follow up to see what is going on today, as we know that policies change daily. I have partnered with an Attorney to negotiate short sales, and have tried to put the Attorney Fees on the HUD with no success yet.

Last time I asked if anyone was having success with Attorney fees I got a lot of response with success stories. Is that still the experience of the majority, and if so how do you defend, list, or put the fee on the HUD to get the lender to approval?

Appreciate the feedback!!

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Replies to This Discussion

Permalink Reply by Joseph C. Alfe on December 15, 2010 at 10:37pm

I get them approved on every deal, usually up to $5000 depending on loan amount. In states where attorneys are not usually used you may have to roll into title fees and have title company pay the attorney.

Permalink Reply by Susan Morimoto on December 16, 2010 at 9:50am

I am in Minnesota, but why do you think that would make a difference. Most lenders we deal with in short sales are out of the same area no matter what state we are in. Where and how do you list it on the HUD, and do you include a contract between Attorney and client in the short sale package?

Permalink Reply by Joseph C. Alfe on December 20, 2010 at 11:41am

On the HUD there is a space for the attorney fee. If lender questions it, let them know that the title charges and closing attorney fees are separate. Many states combine the two.

Permalink Reply by Angela Alfe on December 21, 2010 at 6:40pm

Because some states are Title states (where Title companies do the work of the attorneys, pretty much). In Illinois, attorneys are customary.

I've never had a lender tell me they would not pay the attorney. They may bitch about it, but I remind them that in the state of Illinois, they will pay for the attorney on a short sale or a foreclosure, but they're paying either way. May as well do it while they're making more money. :D

The only "contract" that needs to show attorney representation is on the sales contract. That would be sent to the lender already.

Permalink Reply by Denise Orrico on December 22, 2010 at 1:52pm

Hi Susan!

We usually shoot for $3,500 for our seller's attorney. Like Joe said, there is a line on the HUD on the seller's side where the attorney's fee is listed. We work with the same title company on just about every deal unless our sellers already have an attorney and choose another title co. When we have a negotiator who questions the attorney fees, we remind them that we are an "attorney represented state"-- They may only authorize $1,500 ($600 if it's Chase) but at least the attorney gets paid for representing the seller.

Permalink Reply by Alfredo Velazquez on May 18, 2011 at 1:15pm

Where can you check if your state is a none an attorney state?

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