For borrowers facing the possibility of losing their property to a foreclosure, a short sale may be an excellent option to explore. A short sale can help you avoid a foreclosure and if you are already in foreclosure, can help get you out of foreclosure.
What is a short sale?
A Short Sale (sometimes referred to as a pre-foreclosure sale) is when you sell your home for less than the balance remaining on your mortgage. In other words, a short sale provides you with an opportunity to sell your home for less than what you actually owe the bank.
If your mortgage company agrees to a Short Sale you can sell your property and use the proceeds of the sale to pay off all or a portion of your mortgage balance.
Our office has years of experience handling short sales with many different lenders and mortgage companies.
Our ultimate goal is not only for your bank to approve your short sale request but to obtain a complete waiver of all obligation on any remaining debt that is not covered with the proceeds of the short sale.
Although a waiver is contingent on your bank’s approval and every case is different, our office has been able to negotiate hundreds of successful short sales with waivers of deficiency.
Why a short sale?
Some people will consider a short sale over other loss mitigation options because a short sale can help the borrower dispose of the property without continuing to pay a monthly mortgage.
If you know your economic hardship is long-term or you have come to grips with the fact that you simply cannot afford the property, or perhaps the property is an investment purchase gone bad, then a short sale may be right for you.
Some of the reasons why people choose a short sale include:
- You are ineligible to refinance or modify your mortgage
- You are behind on your mortgage payments
- You owe more on your home than it’s worth
- You have not been able to sell your home at a price that covers what you still owe on your mortgage
- You can no longer afford your home and are ready or need to leave
A short sale can eliminate or reduce your mortgage debt completely. Also, if a short sale is done before a foreclosure is filed against you it can avoid the negative impact of foreclosure. For example, if you sell your house in a short sale as opposed to losing the house in a foreclosure action youmay be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (up to 7 years).
The short sale process is not simple and you should use an attorney to make sure that your rights are protected. Not all non-attorneys care about your interest in the short sale and some of them may only want to close on the deal to get their commission.
It’s in your interest to have your short sale done by a team of experienced attorneys like those available at the Corona Law Firm, PA. Our attorneys and staff at the Corona Law Firm P.A. will fight to protect your interests.
The first consultation is free so call us today to discuss if a short sale is right for you.