Unfortunately, some individuals and families are seriously impacted by the real estate market and the economy. Some people are stuck with a mortgage that is worth more than the property would sell for on the market. Some were swindled by dangerous financing schemes. Others bought at the top of the market and have seen their property’s value plummet. Regardless of the situation, when a property owner needs to sell their home, they may be faced with the reality of a “short sale.” If this applies to your situation, you need to consult with an attorney. Marc Scollar, Esq. is here to serve your needs when dealing with lenders and short sales. If you need to discuss your legal matter, contact Marc Scollar, Attorney at Law.
When a lender agrees to accept a loan payoff that is less than the full amount of the mortgage, it is considered a short sale. Though it may impact a person’s credit, it will not have the same effect as bankruptcy or foreclosure. If the overwhelming debt is just real estate, a short sale may be a good option. The payoff must be approved by the lender. If they believe that you can afford your mortgage, they will most likely not allow for a short sale. To have a bank approve a short sale:
The seller cannot receive any proceeds
All closing costs are paid by the bank
There are countless factors that can impact the short sale, denying the request. For one, if there are two loans, the second lender may not get offered as much money as the first lender and reject the sale. Other things that impact a short sale include:
In many short sale agreements, the lender will hold the seller liable for the “deficiency” of the loan. Simply put, just because they agree to take less money for the property does not mean that you are off the hook for the remainder. Things change and so do peoples’ financial situations. A lender will not just allow a person to sell a house for less than the bank values it and walk away. Depending on your agreement, if you are able to pay back the remainder in the future, the lender reserves the right to seek full payment, with some exceptions. It is important to have the legal support necessary to produce a waiver for deficiency, erasing your liability for the remainder.
Engaging in a short sale is a reality for some homeowners. When you are drowning in the value of your own home, you need an attorney to help you get out of a bad situation. Marc Scollar, Esq. is honored to be a legal resource for New York. With over 25 years of experience and the compassion to guide clients through the short sale process, Marc Scollar law Firm is here to serve. The firm will work to ensure that the bank approves the transaction and your rights and needs are met. If you need an experienced and effective real estate attorney, contact Marc Scollar, Attorney at Law for a consultation.