Helping You Choose the Best Solution
Is a Short Sale Right for You?
These days, many homeowners are discovering that their homes are worth less than what they are paying for them. Some continue to pay the monthly mortgage, hoping for the housing market to improve. Others succumb to foreclosure, choosing to cut their losses and seek a more affordable home. Still others look to short sales to help get them out of debt. In the current market, a short sale may be your best way to cut your losses and avoid a deficiency.
My name is Jeffrey A. Klein, of the Law Office of Jeffrey A. Klein in Daytona Beach, Florida. As a knowledgeable attorney, I advise people facing foreclosure about their options so they can make the best choice for their situation.
In this buyer's market you're competing for sales with banks that are selling foreclosed homes for quick cash. Make sure that you are working with a Realtor and an attorney who is familiar with the short sale process.
What Is a Short Sale?
A short sale involves selling your home to a third party for less than what you owe. You then give the proceeds to your lender as full or partial payment of the past due amount.
What Risks Are Involved?
Short sales have several drawbacks, including:
- Lenders need to approve the sale
- The approval process typically takes months
- Lenders often require homeowners to sign a note for all or a portion of the balance owed
- If more than one lender is involved they tend to argue over which has to absorb the shortfall
- Realtors are often unwilling to handle short sales where there is more than one mortgage
- Short sales involve an excessive amount of paperwork
- Short sales are especially difficult if they involve a second mortgage
- There are no guarantees that the lender will not come after you for the deficiency you may owe, even up to five years down the road, unless your lender specifically waives its right to seek a deficiency judgment against you
If you are facing foreclosure, a short sale may be your best option. We can recommend local Realtors that are familiar with the short sale process and will work with you and your attorney to protect your interests.
Trusted Home Foreclosure Defense
To discuss your foreclosure issue, contact me online or call my office locally at 386-492-9952 or toll free at 866-819-6032. For your convenience, evening and weekend appointments are available.
