We recently competed a short sale closing where the property was in foreclosure.  The property is still in foreclosure and will be until the lender, one of the larger banks, and their assembly line lawyers dismiss the suit.  This, of course, can take several months.  If anyone has tried communicating with a lender, you will understand that something so simple is, in fact, next to impossible.  The large lenders communicate with the lawyers in the same inefficient manner.

I am not surprised by the snail like pace that the large lenders take when dealing with these simple matters.  Maybe its because I see their incompetence almost every day.

But one thing that is not an everyday occurance is when a process server gives legal advice to the new owner of a property.  This is exactly what happened to the buyer of the short sale property.  The process server, after delivering court documents, informed the new owner that the property had been foreclosed – which was false.  And that he was sure the bank was going to take the property back.  This, obviously, upset the new owner.  Not surprisingly, we recevied a panicked phone call.

If you are ever in this type of situation, there are a few rules to follow:  1. DO NOT, under any circumstance, believe what a process server tells you – they are not qualifed to give you legal advice.  2. Send a copy of the document you received to your closing attorney.  3.  Let your closing attorney review the document and tell you exactly what it is and how it pertains to your closing.

Its a shame when very unqualifed people feel the need to play attorney.  The only result that ever comes from this is that it hurts the people they are giving their “advice” to.