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Is it generally recommended to involve an attorney when buying a bank-owned property?

I was told to hire an attorney for the whole process of buying a short-sale house, someone who will conduct the process from the moment we put in an offer and who will actually represent both the buyer and the seller when communicating to the bank. And then maybe to get someone else who will help us with the p&s, closing and all other paperwork. Would that make any sense?

Public Comments

1. In my state, California, attorneys rarely get involved in real estate purchase transactions with that job being done by escrow companies. You should use the same procedures that would be used in a regular purchase of any property. If you are dealing with a real estate agent, he or she should set things up.
2. I would just for their expertise in reading contracts. It is better to pay a legal fee and be protected than find out you got completely ripped off and then have to hire a lawyer to sue them afterwards which would be much more costly.
3. i would use a buyer's real estate agent and never use one that rep's the seller and use a title firm too
4. I would definitely use an attorney in the purchase of property through a short sale. I believe an attorney representing you should be all real estate transactions, but especially in the case of bank owned property as the bank typically has more limited liability with regard to warranties and other issues related to the property. Title Companies are helpful but they are not representing you and Realtors are specifically prohibited from giving legal advice.
5. You don't say where you are located and that may make the difference. My experience with bank-owned properties (REO) is that the bank will designate a title company that will handle the actual closing. The title company does not represent the REO company, but is a neutral 3rd party familiar with the way the paperwork needs to be handled for the REO company. You mentioned bank-owned then you mention short-sale. You realize these are two very different animals, right? Bank-owned is after the foreclosure has happened. Short sale means the owner owes more than the house will sell for in today's market and is behind in mortgage payments with no expectation of being able to meet obligation. I'm not familiar with the concept of you, as a buyer, hiring an attorney to "represent both the buyer and the seller". Sounds like a prescription for trouble to me. If you are in the US, I suggest you look for an experienced, licensed real estate agent to work as your buyer's representative and represent YOU. Whether it's a foreclosure/bank-owned property or a short sale, you want to be sure you have someone representing ONLY your best interests in the transaction. Good luck.