What is a Short Sale?
Simply stated. A short sale is when the lender accepts less than the amount owed on your mortgage. This option should be carefully considered and more importantly fully understood by the borrower.
Are you Considering a Short Sale?
It is very important to consult with an attorney prior to considering moving forward with a short sale. Often borrowers who negotiate their own short sales fail to obtain a full waiver of deficiency. A waiver of deficiency is when the mortgage lender agrees not to sue the borrower for the unpaid balance remaining after the home is sold. When lenders draft short sale approval letter they are often complicated or confusing. It is best to consult with a lawyer to assure that you obtain a waiver of deficiency. We are here to help you through the short sale process and can assist you will fully negotiating with your home lender.
Is it better for me to short sale my house than go through a bankruptcy?
The answer to that question depends on a variety of factors and your individual circumstances. When you request a short sale the application process with the lender may also takes several months. If there is a second lender involved or other lien holders, then all parties must agree to the short sale and the amount they are willing to accept. The foreclosure process will continue in a short sale as well and at the lender’s option, if a sale date is set, they will consider postponement to allow the short sale to proceed. Short sale approval letters are often confusing and difficult to understand. It is important to know if a waiver of deficiency has been given to the borrower or if the underlying balance can be pursued by the lender or lien holder. If the lender denies the short sale or if foreclosure is pending against you then you will need to discuss your options with an attorney.