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It is vital to consult a Tamarac short sale attorney
A short sale is a situation where the bank agrees to take an amount less than what it is owed on a mortgage in exchange for releasing the borrower from a lien. What seems like a simple process, however, is quite complex especially when realtors or other brokers involved are only concerned with their commissions and looking out for their own best interests.
Unfortunately, property owners and investors are frequently led to believe that they don’t require a real estate attorney to complete a short sale transaction, even though the legal contracts they are being asked to sign are often not in their best interest. Like any other legal or enforceable contract, a short sale attorney who is skilled in handling short sale transactions must carefully review the short sale document to make sure that the homeowner’s rights are not being violated.
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How Not Having a Tamarac Short Sale Lawyer Might Hurt
Here is a common situation that occurs way too often: A client comes to our office with a collection letter stating that they owe $100,000 or another large sum of money and they have completely no idea what it could be for since they don’t owe any person that much money. The first question we ask is if they have ever made a short sale on their or investment property or home.
When the most anticipated response is, of course, yes, we further explain to them that the short sale is the reason why they are being sued for such a huge sum of money. Yet after explaining this, they are often confused and are confident saying that the bank or realtor promised them they wouldn’t have any further obligations under the mortgage.
That may be true, but what property owners or investors frequently fail to understand is that they also must be fully released from further financial obligations under the Promissory Note. The result is that these deficiency amounts of the mortgage that the consumer thinks the bank is renouncing for them then gets sold off on the secondary market, often resulting in future debt collections and lawsuits against the unsuspecting property owners who transacted in a short sale.
Short Sale lawyers in Tamarac
Foreclosure attorneys defend your property against foreclosure and they can oversee a short sale deal.
In addition to ascertaining that our clients’ rights are protected during the short sale procedure at the moment and in the future, our Tamarac short sale Lawyers for buyers and sellers have been successful in aggressively negotiating and advocating for our clients by ensuring that the maximum amount of loan balance reductions are achieved. Our Florida foreclosure lawyers work with you in order to help you reach a favorable outcome.
Benefits of a Short Sale
One of the main benefits of a short sale is that it is an alternative to foreclosure. So, instead of having your home foreclosed and losing the rights to it, a property owner can agree to sell his or her property for less than the amount owed on the mortgage. This can end up where the seller owes money to his or her lender and also needs the lender’s approval, but a short sale does offer a number of benefits in addition to avoiding foreclosure on one’s home.
Both Parties Are Better Off
Not only are short sales valuable for property owners looking for a nice house at a lower budget, but they are also beneficial for the banks and financial lenders themselves. This is because short sales are typically the most cost-effective option for the bank despite agreeing to sell the home for less the value of the mortgage.
In most circumstances, the bank will only approve a short sale if the current property owner is behind in their mortgage payments by several months. Instead of continuing to receive zero payments on the home, the bank prefers trying to sell the home through a short sale to at least acquire some of the loan’s costs.
The lender does have the option to foreclose upon the property instead of approving a short sale, but this can be injurious to the lender. Foreclosure can be much more costly than a short sale because of an eviction and administrative expenses associated with the foreclosure process. In addition, lenders have to pay a ton of maintenance and repair charges when they foreclose upon a property before they put it back on the market. Even when they put the property back on the market, there is no guarantee that the home will sell in a timely manner. As a result, bankers and other lenders are left having to pay all maintenance costs associated with the home until it finally sells.
The short sale attorney fee is way lesser compared to what one would pay during a foreclosure.
A Short Sales is Not As Big A Hit On Your Credit
Sellers do not run the risk of hurting their credit as bad with a short sale as they would with a foreclosure. Because the seller’s credit does not take a huge dive when it comes to a short sale transaction, that individual is able to purchase another home faster than if they had to go through a foreclosure case.