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Short Sales - They May Be Your Answer If You Are Facing
Foreclosure
By
Thomas Bladecki
Are you
facing a home foreclosure? Has your
financial hardship landed you in a position
that may cause you to lose your home? Well
then, a short sale may be the answer.
Selling your home by doing what is referred
to as a "short sale", by which the lender
agrees to accept less then what is owed, may
be just what you need to get on the road to
recovery.
Short sales essentially tell the bank that
you have a purchaser that has agreed to
purchase you home for less then what the
current outstanding mortgage balance.
Lenders lose money by doing this, however
the short sale is a decision that they must
agree too.
Some lenders will be very open-minded to a
short sale lawyer's fess, court costs and
the likelihood of a bankruptcy, on your
part, in the future. Ultimately,
foreclosures cost lenders tens of thousands
of dollars, losses that are certainly a loss
in the event that you file a bankruptcy.
Eviction costs, administration and sale of
your home these too are factors that lenders
take into account while consider the short
sale offer.
A short sale offer that is as close to the
actual market value as possible will more
likely be your best approach to getting the
bank to consider this option. If the offer
is considerably less then the market value,
you will need to convince the lender that
the offer on the table is in their best
interest, and to move forward with the short
sale of your property. Keep in mind that
mortgage companies are in the business of
lending, not property management.
Some ways to persuade the lender to consider
the short sale are to convince them that
there is a wide range of repairs required on
the property, the local economy for housing
and employment is in distress, or any other
persuasive explanation why they should agree
to the short sale.
This type of sale is preferred over a
foreclosure with the later; your credit will
be negatively affected which will require a
great deal of time and effort to repair.
Short sales allow you to repair a damaged
credit history faster so that you can get
back in the housing market faster, once your
financial position is recovered.
These sales are a radical solution to your
financial problems, however you can convince
the lender that you are desperately in the
rears on your payments and you have no
viable way to resolve the default amount, or
the future payments on the mortgage then you
are a prime candidate for a short sale.
The foreclosure process is very costly, and
can be very complicated. Lenders sometime
would rather avoid having to complete the
foreclosure process, and avoid getting the
home back as an REO, otherwise known as a
"Real-Estate Owned" property.
Conclusion
Are you one
of the many that suffer from insurmountable
debt and wonder if bankruptcy is an option?
Give us a call at (203) 924-6700 or
contact us.
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At these seminars an attorney will personally go over your
mortgage looking for a defense