Table of Contents
Table of Contents
Trusted Foreclosure Defense Attorneys
A short sale happens when the financial lender or bank agrees to take a sum less than what is owed in mortgage on a sale of the property.
What sounds like a simple process, however, can get complicated, especially when there are mortgage brokers involved that are majorly concerned with their commissions and looking after their own best interests.
Unfortunately, property owners and investors are frequently led to believe that they don’t require an attorney to make a short sale in Florida, even though the legal contracts they are often asked to sign are not in their best interest. Like any other legal contract, a short sale attorney who is experienced in handling short sale deals must carefully review short sale paperwork to ensure that the homeowner’s rights are not being violated.
Why You Should Have a Short Sale Attorney By Your Side
Here is a common situation that occurs way too often at a lawyers office: A client walks into the office with a collection letter stating that they owe $100,000 or another large sum of money and they don’t have the slightest idea what it could be for since they don’t owe anyone that much money. The first question the lawyer asks them is if they have ever made a short sale on any property.
When the expected response is, of course, yes, you have to convince the client that the short sale is the reason they are being sued for such a huge sum of money. Most are often confused and think the bank or realtor promised them they wouldn’t have any further obligations under the mortgage.
That might be true, but what property owners or investors often fail to realize is that they must be fully freed from all financial obligations under the Promissory Note. The result is that these deficiency amounts of the loan that the loanee thinks the bank is waiving for them then get sold off on the secondary market as debt often resulting in future debt collections and lawsuits against the unsuspecting homeowners.
Benefits of a Short Sale
One of the main benefits of a short sale is that it is an effective alternative to foreclosure. So, rather than having your property foreclosed upon and losing the rights to it, a homeowner can decide to agree to sell his or her house for less than the sum owed on the mortgage. This can end up where the seller owes more money to his or her lender and also needs the lender’s approval, but a short sale does offer many benefits apart from avoiding foreclosure on one’s home.
Both Parties Are Better Off
Short sales are not only beneficial for homeowners seeking to buy a nice house at a lower budget but also beneficial for the banks themselves. This is because shorts sales are the most cost-effective option for the bank or the lender despite agreeing to sell the home for less than the value of the loan.
In most situations, the bank will only approve of a short sale if the current property owner is behind in their regular mortgage payments by several months. Instead of continuing to receive zero payments on the mortgaged home, the bank prefers to try and sell it through a short sale to at least acquire some of the loan’s costs.
The bank has the option to foreclose upon the property instead of approving a short sale, but this can be disadvantageous and more expensive to the lender. Foreclosure can be much more costly than a short sale because of the administrative and eviction expenses associated with the foreclosure process. In addition, lenders normally have to pay a ton of maintenance and repair charges when they foreclose upon a house before they put it back on the market. Even when they put the home back on the market, there is no guarantee that the property will sell in a timely manner. As a result, lenders are left having to pay all maintenance costs associated with the home until it finally sells.
Not As Big A Hit On Your Credit
With the help of realtor short sale specialists, Sellers don’t run the risk of hurting their credit reports as bad with a short sale as it would with foreclosure. Because the seller’s credit is not hugely impacted when it comes to a short sale, that individual is able to purchase another home faster than if they had gone through a foreclosure case.
Talk to Our Short Sale Attorneys in Plantation, FL
In addition to ascertaining that our clients’ rights are fully protected during the short sale process and in the future, we aggressively negotiate and advocate for our clients by ensuring that the maximum amount of loan balance reductions are achieved. Our foreclosure defense lawyers work with you in order to help you reach a favorable outcome. How much does a short sale attorney cost? Call our offices today to discuss the fees with our lawyers. Consultation is free.