Listen to the full episode here We all need to hire an attorney at some point in our lives. This is especially necessary when you’re in the private lending business. Today, host Keith Baker lists down the eight questions you need to ask yourself when hiring an attorney to do either your foreclosures or draft the documents. You don’t want to miss this episode because, at the end of the day, if your documents aren't right, it can cause a lot of headaches and can expose you rather than protect you.
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8 Questions To Ask And Consider When Hiring An Attorney
Selecting An Attorney For Drafting Documents
If you're looking for practical tips and advice on being a successful private lender and building wealth without banks on Wall Street then you're in the right place. If you want to learn from my mistakes so that you can avoid them and not repeat them, pull up a chair and pour yourself a drink because this show is for you. This is episode number 91, almost up to 100. I'm getting excited about that. One of the things that I get asked a lot is how do I choose attorneys to do either my foreclosures or draft documents. Fortunately, I only got one foreclosure and went with the recommendation of a friend.
When it comes to having an attorney draft my documents, I like to have a slate or panel of them. Figured I'd go through that with you and hopefully share some insight into how my process is for doing this. Being a private lender, I want to mitigate as much risk and stay as secure as possible. That's when I want to convey over to you and especially if you're starting out. Even if it's your home state, I would not recommend lending in a state that had a lengthy judicial foreclosure process and low usury rates. That's a given. I wish we could dig a little more into that, but you don't want to lend in a state where there's a redemption period after foreclosure where the borrower can come back and make everything whole again and get the note going.
The odds that they can't do it the first time, they’re not going to be able to even if they reinstated the adds. They’re not going to do it the second time. That's the reason I would suggest staying away from the redemption period states. Stay away from states that heavily favor the borrower or at least they have a very lengthy process to give the borrower a lot of time to make amends or do whatever they can to keep the note going. Since it's like New York, they have a very long foreclosure and lengthy process. It could take a couple of years to get somebody out and to get the collateral back to you. Not to pick on New York, but that is one example of a state that I won't lend in. Lend to a state whose laws are either the same or similar to Texas. It varies from state to state.
What that basically means is you want a state that has non-judicial foreclosures, no redemption periods after the foreclosure is complete. That's one good thing about New York. They don't have a redemption period, but they might as well if it can take 2 to 3 years to get people out. They have a relatively short default period of 90 days, which I believe that's a federal law, not a state law. The acceleration notice period in Texas is relatively short, 21 days, from the time you file until the auction on the first Tuesday every month. That's how quick it can go down. Once the 90 days have been documented to fall to the notice accelerates gone out, all that fun stuff is gone.
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Twenty-one days from the time you noticed the borrower until when you can get the house back or get your collateral back. Those are the states that I recommend you lend in and do your own due diligence, as always as the biggest caveat. There are 50 states and I only deal with the laws of one of those. That means 49 out there, at least 51 states out there that I don't know the laws. The eight questions and the things you want to consider when you're adding or looking for an attorney, especially for doc prep. This is where the rubber meets the road because if your documents aren't right, then it can cause a lot of headaches. It can expose you rather than protect you.
How Long Has The Attorney Been Practicing Law
Not to get used as a fear tactic, but that's why I always insist that I use my attorney or my attorneys will draft the documents to borrow or pay for it. I give them options for the various attorneys that I like. Right now, I'm down to two. I give options like, “This is who I'd like.” I always want to use the title company attorney that I have done before. You can use the title company's attorney to draft documents and they're usually the cheapest. You get what you pay for. You are not the attorney's client. The attorney's client is the title company. You want somebody drafting documents for you or your IRA or your wife's IRA and with their best interest at heart. Here we get down to it. Number one, I want to know
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