Short Sale
Facilitation
The recent declines
in the economy and real estate market have put homeowners in financially precarious situations.
Many cannot afford to continue to live in their homes and are desperate to find a way out of the
problem. A
short sale occurs when a lender agrees to accept less than the outstanding loan amount to satisfy
the property owner’s loan. A short sale allows both the lender and the distressed property owner to
avoid foreclosure by selling the property at a loss.
Short sales are one of several options available,
but they have unpleasant consequences that many people are not aware of. Short sales will impact
your credit, possibly reducing your chance of purchasing a home in the near future. The difference
between the loan value and the amount accepted by the lender may be considered taxable income to
you, if the home is not your primary residence.
Short sales are more complicated and time consuming
than an average real estate sale, making it important to retain an experienced real estate attorney
to oversee and negotiate the transaction. Once your Realtor has found a bona fide purchaser for the
property, our firm works with sellers, buyers, and Realtors to negotiate and draft sales contracts
which include the conditions of the short sale. Special attention must be paid to all short sale
terms, which are often written in favor of the lender. We assist Realtors and mortgage brokers
guide their clients through the short sale process, and coordinate the transaction from contract to
closing.
Depending on property
owner’s specific situation, a better option can be a deed in lieu of
foreclosure. This allows the homeowner to convey,
or transfer, all interest in real property to the bank in order to satisfy the defaulted loan
and avoid the foreclosure process. This can be better for the borrower and the lender. The
borrower is not only released from the debt, but it is less damaging to their credit. For the
lender, this process is less time-consuming and less expensive.
At Wild, Felice & Partners PA, we believe that
real estate owners should evaluate all of their options and be advised of the legal consequences
before they enter into any agreement.
Services we provide
are:
-
Reviewing your loan
documents to determine nature and extent of your obligations
-
Advising you of the
consequences of a default under your mortgage, including potential for deficiency
judgment and cancellation of debt income
-
Helping you develop the best
strategy for your situation
-
Representation of buyers and
sellers in short sales of real property, including negotiations with lenders and
drafting, review and negotiation of agreements of sale
Make an informed decision; contact us for a free
consultation. Please contact us at
(954) 944-2855
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