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Florida has one of the highest percentages of foreclosures in the country. This puts a strain not only on the owner but also on the courts and banks having to handle each individual foreclosure case. As such, banks and other lenders often make deals with the Homeowner to clear the debt. A short sale is one of the most popular methods.
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What Is A Short Sale?
As the name implies, a short sale will fall short of the amount the property owner owes on the property. For instance, if a home is mortgaged at $220,000, selling it for just $170,000 will constitute a short sale. Normally, selling a property for less than what is owed results in what Florida short sale law calls a deficiency judgment- a money judgment against the short seller issued by a court for the remainder. This may discourage most underwater homeowners from selling their homes because they would still be on the proverbial hook for the deficit of what was owed.
A short sale is when someone sells their home for less than what is owed in mortgage after reaching an agreement with their lender or bank to waive the remainder of the deficiency judgment. By hiring a competent Florida short sale lawyer and paying a reasonable short sale attorney fees, you will have your short sale done effortlessly. This technically avoids foreclosure and a deficiency judgment because in a true foreclosure, no agreements can be made, but the bank still ends up with the property. The difference is that the agreement relinquishes the bank’s right to seek a deficiency judgment, which successfully wipes the debt off the homeowner’s ledger.
Not A Cure-All
While a short sale can, in most ways, be the answer to a homeowner’s financial problems, it is important to comprehend that it is not an automatic deal. The bank or lender may determine that despite your inability to make regular payments, your financials are strong enough where a short sale would place them on the proverbial losing end – in such circumstances, filing Chapter 13 may be a better solution since you can reorganize debt. You must be able to show your lender or bank that your financial picture is miserable enough that a short sale will definitely give them the best possible return on their investment. With the help of a “short sale attorney near me,” You will be better placed to present your case to the bank.
It is also essential for you to grasp that while a short sale is nowhere close to bad, a mark on your credit report as a foreclosure is, your credit report will still almost certainly be negatively impacted. Still, in most cases, it is worth going through a short sale when the alternative is to keep pouring money into a property that you may never succeed at freeing from its underwater mortgage.
Talk to Our Experienced Sunrise, Florida Short Sale Lawyers Today
While it can be overwhelming to go through a foreclosure in Florida or a short sale, it can be markedly less so when you have a knowledgeable real estate lawyer or short sale specialist on your side. The Miami short sale lawyers at Brian Kowal Law, are willing and able to answer your questions about where to go from here. Call our offices today to set up an appointment.