What is a Short Sale?
A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor (or rather the lender allows the home to be sold for less than what is owed to the lender currently). The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender usually for full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale.
What are the Benefits of a Short Sale?
If approved by the lender in a timely manner, the following are some of the benefits of a properly performed short sale in Michigan:
Avoid foreclosure. The negative effect on one's credit, auction signs, deficiency judgments and other negative consequences of foreclosure may possibly be avoided by the successful negotiation of a short sale.
Avoid bankruptcy. Even when a homeowner is behind in mortgage payments and owes the lender more than the house is worth, a successful short sale could allow a homeowner to avoid filing for bankruptcy under certain circumstances.
Possibly eliminate the balance of any mortgage and home equity loan owed to the lender. Such forgiveness does not always occur in a short sale situation, but can be more likely with a short sale than with a foreclosure.
A Short Sale transaction also provides peace of mind and predictability because you will have more specific information regarding when the transaction will take place, and thus when you will need to vacate the property.
Why should a Law Firm negotiate your Short Sale?
There are many factors the Banks use in deciding whether or not they will close a Short Sale. These factors are usually related to the current real estate market climate and the individual borrower's financial situation as well as the negotiators skill and experience in negotiating your short sale. Law firms can add credibility, because the lenders/servicers may be worried about the threat that attorneys have.
Who does the Law Firm negotiate with?
Lenders have a department (typically called a loss mitigation or work-out department) which processes potential short sale transactions, and these are the departments that we directly negotiate with. In all of our short sales transactions deficiency judgments, issurance of 1099 and credit report inferences are always a negotiation point with the lender.
Defaulting on mortgage payments can be a difficult and complicated situation. Many people find themselves falling into default, or are already in default, and don't realize that there are options available before the bank takes the house away. A short sale is an excellent way to avoid foreclosure and can offer time and protection, as long as it is done properly by a qualified attorney. Short sales are more complicated and time consuming than an average real estate sale. Additionally, it can be very difficult to convince a bank that they will profit more if they accept less money from the sale than what is owed to them. Given the complexity of negotiating a short sale, it is important to retain an experienced and knowledgeable attorney to oversee and negotiate the transaction. The attorneys of our law firm have extensive experience striking deals with lenders to help clients avoid foreclosure. Let us put our experience to work for you.
Why use a Professional Realtor to sell the Property and Babi Law Office to Negotiate Short Sale?
Working with Real Estate Agents/Brokers: Using a professional Realtor to help market and sell your property by brining in good offers. Many real estate agents/brokers are negotiating short sales, however we do recommend using an attorney in the process. This ensures that you have specialist in their area, a realtor selling your house and a Law Office negotiating your Short Sale. Babi Law Office will review the contracts and approvals sent by the lender to make sure your legal interests are adequately protected.
Real estate agents are not attorneys and are also subject to liability for guiding their clients in the wrong direction or not informing them of any legal liability they may be facing, so utilizing an attorney helps all involved, real estate agent and homeowner. For our full service short sale negotiations we include negotiation of your short sale with your lender, deficiency judgment negotiation, and 1099 issuance. We also offer these services on an ala carte basis. We work with realtors all the time.
For further information or to discuss getting help with bankruptcy, short sales, or foreclosures we invite you to schedule a free confidential consultation with our experienced attorneys by calling us at 248-698-4885, or filling out our contact us form on our website. The confidential consultation is free.
If you are finding it increasingly difficult to make your monthly mortgage payments and are facing the possibility of foreclosure, you may need an experienced Maryland short sale attorney to negotiate with your bank.
Why would I hire a Real Estate Attorney to do a Short Sale for me?
It is important to understand that just because your bank is discussing a short sale with you does not mean they have agreed not to go ahead with foreclosure. While you are negotiating, the bank could be preparing for foreclosure. It is also important to note that, in some cases, banks write off their losses from short sales, but in other cases, they require borrowers to sign promissory notes agreeing to eventually pay back the difference between the sale price and the mortgage debt.
INFORMATION HEREIN IS NOT LEGAL ADVICE. The opinions expressed in this web site represent only the opinions of the author(s) and are in no way intended as legal advice upon which you should rely. Every person's situation is different and requires an attorney to review the situation personally with you.
NO ATTORNEY-CLIENT RELATIONSHIP CREATED. This web site does not create an attorney-client relationship. Do not rely on any information on this site as it may be outdated or may not apply directly to your particular situation. Babi Law Office, PLLC practices law only in the State of Michigan where authorized to practice and does not seek to represent anyone in any other jurisdiction.