When faced with a foreclosure, a short sale attorney might be able to assist you with an alternative to losing your home to a foreclosure. The lawyers of Christopher M. Sprysenski, P.A. help clients defend their foreclosure lawsuit while exploring whether a short sale might help them out from an “underwater” home.
A short sale involves the listing of your home at a sales price that is less than the amount owed on a mortgage loan. To sell your home for less than what is owed, a short sale attorney must receive your mortgage lender’s approval. This is critical because the mortgage lender will forgive the difference between what is owed on your loan and the sales price.
In order to receive a lender’s approval for a short sale, you typically must show the lender you are facing some sort of financial hardship. This may require that you fill out an application for a short sale approval for your lender. You may also be required to provide financial documents to your lender like bank statements and evidence of your income. A short sale attorney can assist in filling out any applications necessary to ensure you have the best chance of receiving your lender’s approval.
One critical aspect of a short sale is that all holders of mortgages on your property must agree to the short sale. Often times, lien holders who have mortgages “junior” to your first mortgage might receive nothing. Without the approval of both primary and junior mortgage holders, your short sale will more than likely not be approved. A short sale attorney should run a title search to assist you in identifying all potential lien holders that will need to provide their approval of your short sale.
A short sale will come with both positive and negative impacts. If approved, you will have either all or a large portion of your remaining loan amount after the sale forgiven. Real estate agents and title agents are also motivated to see your short sale approved as they will receive commissions and fees related to the property closing.
Short sales also come with some pitfalls that a short sale attorney should advise you concerning. There may be a tax impact that you will need to confer with an accountant or tax attorney. You may also be required to contribute some amount of money at the closing of the short sale for the remainder of your loan to be forgiven. Communicating with all lien holders to ensure it is clear what remaining financial obligations will exist after a short sale is critical.
Finally, a short sale may have different impacts on your credit reporting. Consulting with a short sale attorney early may help you avoid credit reporting problems.
When our clients are faced with a foreclosure, a short sale attorney with Christopher M. Sprysenski, P.A. can help you understand whether a short sale can benefit you. Our firm litigates foreclosure cases so that you have the time to move forward with a short sale. We also recommend to our clients real estate agents and title companies that have helped other clients successfully short sell their properties.
Ready to have a consultation with a short sale attorney with Christopher M. Sprysenski, P.A.? Contact us at 407-630-8485 today.