|To Our Colleagues in the Real Estate Industry-|
I'm writing to wish everyone a Happy New Year and to thank you all for the support you provided our company in 2011!
We are all part of the same real estate community, and we are all feeling the impact of this challenging economy. It is our aim to foster a collaborative relationship between our office of attorneys and paralegals and the Agents and Lenders with whom we do business.
Manaker, Cipolla and Associates (MCA) manages many hundreds of closing transactions each year. This puts us in a unique position to identify, in an environment that changes almost daily, market information and new patterns as they emerge.
We would like to share our legal perspective on these issues with you in the hope that it will provide some insights helpful to your business. So each month, this newsletter will showcase a different topic detailing something new we have seen in our office.
Our first article on foreclosure sale issues follows. Stay tuned in February for our next article, a look at R.E.O. purchases and pitfalls to avoid when retaining representation for your client.
Someday, when the grandkids want to know what we did during the "Great Recession", we can all say that we worked in the real estate business - making the American dream of home ownership a reality for many of our clients - and doing our part to keep the industry and the economy going!
Let's make it a "Great 2012"!
Manaker, Cipolla and Associates, LLC
The Art of the Foreclosure Sale
Is It Right For Your Client?
This type of transaction can be an excellent opportunity for the right client to obtain a property at a very favorable price. However, this is not a transaction Manaker, Cipolla and Associates (MCA) would recommend for every client.
There are also several pitfalls to be avoided by both the client and the real estate agent. A few points to be considered by the agent follow.
Once you have assisted your client in identifying a property to purchase, he or she should consider retaining the services of an attorney, well-acquainted with this process, to represent them in the transaction.
The agent / attorney team provides distinct advantages for the client. For example, MCA attorneys attended foreclosure sales either with the client, or on the client's behalf, at least ten times in 2011.
"In almost every instance," notes MCA partner Seth Manaker, "we were successful in placing the high bid - enabling the client to purchase the property." In most cases, the client was also represented by a real estate agent to whom the client was more than happy to pay a commission for his or her time and expertise.
Once on board, the attorney should immediately order a title search. This is a critical first step taken to reveal any liens that may not have been extinguished in the foreclosure action, and other potential title concerns.
If the property does not have clear title, the search will help you and your client determine the cost of clearing the issues - a figure that should be calculated into the bid amount the buyer is willing to offer.
That leads to another foreclosure reality that can become an issue. The buyer will typically have approximately 30 days from the auction date to deliver certified funds for payment in full of the purchase price.
"I have found there are very few, if any, commercial lenders who are able to approve and fund a property purchase within 30 days," says Manaker.
This means that the buyer at a Foreclosure Auction will generally need to have the cash available to close within 30 days without any lender involved.
There are several other factors to consider when determining whether a Foreclosure Auction is going to be a good strategy for a particular client. We are available to discuss the details with you if we can be
Disclaimer: This newsletter is designed to provide general information only. The information presented within it should not be construed to be legal advice. Neither the use of this newsletter nor its contact links establish the formation of a lawyer/client relationship.
To be the number one provider of superior legal services in our market, exceeding the expectations of our clients, and earning the enthusiastic support of our referral sources.
|Meet Our Team
Founding Partner Seth Manaker has been practicing as a real estate attorney in Charleston since 1996. Originally from Hartford, Connecticut, Seth graduated from Trinity College with a degree in Urban Studies and Economics, and obtained his Juris Doctor from the Western New England College School of Law.
Seth's affinity for the South stems from his mother's Southern roots - her entire family is native to Charleston and he has always considered the city his second home.
Both MCA and Seth, personally, support several charitable organizations including the March of Dimes, where he is a member of the local Board of Directors, and the Leukemia Society, to which Seth and his brothers contribute annually to honor the memory of their late mother, Harriet.
Seth lives on James Island with his wife, Barbara, two children, and two dogs.
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