How Our Firm Rescued a Challenging Real Estate Closing
At Shafritz & Dean, we pride ourselves on delivering creative legal solutions, even when the path forward seems blocked. A recent transaction highlights our commitment to seeing our clients’ goals through to the finish line—no matter how complex the challenge.
The Challenge: A Surprise Foreclosure
What began as a routine closing quickly turned into a high-stakes legal puzzle. Just before disbursement, we were informed that the property in question had already been foreclosed on—an alarming discovery that would typically halt a closing in its tracks.
Rather than walk away, we immediately took action.
Our Solution: Fast Thinking and Skilled Negotiation
We contacted the foreclosing lender without delay and proposed a solution: we held seller funds in escrow and offered a full payoff in exchange for unwinding the foreclosure. The lender was open to the idea but uncertain about the legal mechanics required to reverse the process.
That’s where our team stepped in.
We worked closely with the lender’s legal counsel and obtained approval to draft and execute a Quitclaim Deed transferring the property back from the lender to the seller. This critical step reopened the door to completing the closing and transferring clear title to our client.
Protecting the Buyer’s Interests
During this process, it also came to light that the seller had misrepresented the property’s condition, claiming it was vacant when in fact it was occupied by a tenant with a valid lease and an outstanding security deposit.
Once again, we acted quickly to protect our client, the buyer. We secured the payoff lender’s approval to disburse additional funds from the seller’s escrow to the buyer to cover the security deposit and adjust for the presence of the tenant. This ensured our client received everything he had bargained for—no surprises.
The Outcome: A Successful Closing Against the Odds
Nearly a month after the original closing date, we successfully disbursed the transaction. The buyer received additional compensation, obtained clear and marketable title, and achieved his goal of owning the property he had set his sights on from the beginning.
Ordinarily, a situation like this would have ended with the property remaining in foreclosure and the buyer walking away with a refund. But our client was determined—and we were just as determined to make it happen for him.
Why It Matters
This case exemplifies the added value of working with a legal team that understands both real estate law and the human motivations behind each deal. Our firm goes beyond the paperwork to find solutions that make deals work—even when circumstances threaten to derail them entirely.
If you’re looking for a law firm that will go the extra mile to protect your investment and see your transaction through, we’re here to help.