SHORT SALE
For some people selling their home is actually the relief that they need. Upon review your financial situation, it may become obvious that you can no longer afford your home. Many owners who come to this realization often try for months to sell their home through traditional real estate methods without much success.
Due to market fluctuations and changes beyond your control, sometimes your home may not sell at the anticipated full price of your loan. A Short Sale allows you to sell your home to a third party at a price which is less than the total amount that you owe.
What is a Short Sale?
A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount. For example: A homeowner, who is facing foreclosure, has an existing first mortgage of $450,000. We write an offer to the lender for $350,000, which is accepted as full payment for the loan. This is a short sale. Why is a lender willing to take such a discount? The answers are the following: First, banks do not like excess inventory and bad loans on their books. Thus, if they see an opportunity where they can sell the property without a huge loss, they will do it. Second, lenders know they could lose a lot more money if the property goes to auction. There are significant fees involved in the messy auction process, they are better off taking the discount beforehand and be done with the headache.
Your lender will use the proceeds from the sale to pay off the mortgage and the remaining balance will be negotiated or perhaps even forgiven. The Short Sale is an option for homeowners who are willing to part with their property to save their credit rating to be in a position to purchase a new home in a short period of time. .
Negotiating a Short Sale with the lender is a difficult process that requires knowledge of how the banks negotiate these type of agreements. If you try to do a short sale on your own, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the hard work and the negotiating can begin.
Many short sales fall through for a number of reasons. We have successfully negotiated a Short Sale for many home owners and we know what lenders need for approval and in what order. If you would like for us to engage your lender regarding a Short Sale of your property, please click on Short Sale Package to print out the forms you need to sign to send to our office.
Contact a Miami Foreclosure Defense Lawyer at Dominguez & Associates, P.A.
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