Does a short sale stop a scheduled foreclosure?

A short sale can lead the lender to postpone or cancel a pending sale date once they've approved the transaction, but it isn't automatic. The attorney handling the short sale usually needs to confirm this directly with the servicer.

Who pays the attorney fees in a short sale?

Arrangements vary. Sometimes the fee is paid at closing from sale proceeds, and in some cases it's negotiated as part of the lender's approval of the short sale.

What happens to a second mortgage or lien in a short sale?

Any additional liens need to be negotiated or released before closing, since the buyer typically needs clear title. This is one of the more common sticking points in a short sale.

Short sale attorney: selling a home for less than what's owed

A short sale means selling the home for less than the outstanding mortgage balance, with the lender agreeing to accept that reduced payoff instead of proceeding to foreclosure. It sits between two areas of practice: the real estate side of listing, negotiating, and closing the sale, and the foreclosure defense side of dealing with the lender while a sale date may still be pending. Because of that overlap, homeowners often want one attorney who can handle both the transaction and the lender negotiation at the same time.

The attorney's role typically includes reviewing the purchase contract, negotiating short sale approval with the servicer, making sure liens and second mortgages are addressed at closing, and confirming the deal actually satisfies the debt so the foreclosure gets called off.

Negotiating short sale approval with the mortgage servicer
Reviewing the purchase and sale contract
Clearing or negotiating any additional liens on the property
Coordinating the closing timeline against a pending foreclosure sale date

What it costs

Short sale legal work is sometimes billed as a flat fee tied to the closing, and sometimes the fee is negotiated as part of the settlement with the lender rather than paid directly by the seller. Because a foreclosure may still be pending, timing matters, so ask how the fee structure works if the sale doesn't close before a scheduled auction date.

Top 3 by our score

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1. The MTM Law Firm PLLC
4.9★ · 115 reviews

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2. Law Office Of Eva Donohue PA
4.9★ · 96 reviews

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3. Byrd & Barnhill, P.L.
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FAQ

Does a short sale stop a scheduled foreclosure?: A short sale can lead the lender to postpone or cancel a pending sale date once they've approved the transaction, but it isn't automatic. The attorney handling the short sale usually needs to confirm this directly with the servicer.
Who pays the attorney fees in a short sale?: Arrangements vary. Sometimes the fee is paid at closing from sale proceeds, and in some cases it's negotiated as part of the lender's approval of the short sale.
What happens to a second mortgage or lien in a short sale?: Any additional liens need to be negotiated or released before closing, since the buyer typically needs clear title. This is one of the more common sticking points in a short sale.

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