The future is unpredictable, and while you may be financially secure one minute, something may occur that significantly affects your finances. Many of us experience financial issues, but if you have a mortgage you’re struggling to pay off, you may experience additional obstacles to get better control over your finances. One action that may be necessary for this situation are short sales. Deciding that a short sale is necessary can be difficult and can be a complicated process to go through.
If you think that you may need a short sale for your home, you’ll need the guidance and knowledge of an experienced real estate attorney to help you through it. Tressler & Associates can provide the legal assistance you need.
A short sale occurs when the owner of the property sells it for less than is due on the mortgage. This is necessary when the owner is experiencing financial hardships and is unable to afford to stay in the home. When this happens, the lender needs to approve of the short sale and will receive the proceeds. To start a short sale, you’ll need to explain to your lender why one is necessary, and only once they approve of it may it continue.
A short sale may seem close to foreclosure, but there are distinct differences to be aware of. First, a short sale is voluntary, so the owner must decide this is the route they want to take, while a foreclosure is involuntarily and the lender seizes the property.
While a foreclosure may also be used in similar circumstances, a short sale is sometimes the better choice. Short sales are less damaging to a person’s credit than a foreclosure, so it’s often preferable. Some homeowners who go through a short sale may also be able to buy another property immediately after, although getting a new mortgage will be challenging. However, short sales are much lengthier than foreclosures and require much more work from the owner.
Short sales are extremely complicated, and when your finances are involved, you don’t want to take any risks that can hurt you even more. This process is time-consuming, involves a large amount of paperwork, and is very stressful. You shouldn’t go through this alone and accidentally make a mistake that may put you in an even worse financial situation.
Here are a few ways a real estate attorney can assist you during a short sale.
A short sale cannot take place without permission from your lender, and getting this is not always easy. Lenders risk losing money during short sales, so they’re unlikely to agree to one unless you can state your case efficiently and convince them this is necessary. Real estate lawyers are skilled negotiators and can help explain to your lender why a short sale is more beneficial to them than any other alternative.
Short sales involve a great deal of paperwork and legal documents, such as a short sale agreement, that will be difficult for most people to understand. You shouldn’t sign any legally binding contract without having a lawyer review it and explain the terms and conditions first. Going through with a short sale is a big decision, and you need to know what you’re getting yourself into.
As a short sale involves selling the property for less than the amount due on the mortgage, something still needs to be done about the difference. In some cases, lenders may accept the loss and forgive the difference. However, this doesn’t always happen, and the owner needs to work with the lender to determine how the difference will be settled. Some owners may be given a deficiency judgment requiring them to pay off the remainder of the mortgage. A real estate attorney can help negotiate for this amount to be reduced or the deficiency judgment to be waived altogether.
No one wants to find themselves in a position where they need to sell their property, but this is sometimes unavoidable. If a short sale is the best option for you and your financial situation, Tressler & Associates can provide the assistance and support you need. We understand how this challenging process works and will ensure that you have a team looking out for you.
Contact us today if you’re considering a short sale for your property.
Commercial real estate property can seem simple from the outset. It’s a piece of property you use to run a…Continue reading
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