A “short sale” is where proceeds from the sale of real property fall short of the balance owed on a loan secured by the property. The lender agrees to take as payment in full, a smaller amount than what is owed on the mortgage, in exchange for the sale of the property to a third party. It is win-win for both sides. The lender gets the highest price for a quick sale at a market price, and the borrowers get relief from possible future legal actions and deficiency judgments. Additionally, the borrowers’ credit rating tends to immediately improve because their credit report shows that the mortgage was paid in full.
Short sales of real property, where debt exceeds equity, are often lost in the complex maze of lender approval. We have the knowledge, experience, relationships, and clout to quickly and successfully handle all of the details of your short sale transaction.
Our short sale services are TOTALLY FREE OF CHARGE to the client. The lender covers all of the costs. We handle short sales for both residential and commercial properties, virtually anywhere in the country.
The short sale process includes:
- Initial Consultation, where we evaluate your case to determine if conditions exist for a short sale, loan modification, forbearance or other acceptable workout solution.
- Package Preparation: where all of the required documents are prepared and delivered to the lender.
- Sale of the Property: Our affiliated real estate agents aggressively market the property to generate the best possible purchase offers.
- Negotiate Lender Approval: Next we negotiate the terms of the short sale with the lender. These terms may include the sale price, closing costs, etc.
- Close the Sale: After the lender approves the terms and conditions of the short sale, we move forward with the closing of the sale between the owner and the new buyer.
You must substantiate your inability to pay your mortgage through some “hardship” in order for the lender to relieve you of liability for the loan. Hardship can include: reduced income or unemployment; inability to work due to health reasons; separation or divorce; medical bills; business failure; death of a spouse; an adjustment in mortgage payments or unforeseen increases in your monthly expenses; or any other circumstance that cripples your ability to repay your mortgage.
Most lenders will accept short sales or discounted payoffs, however there are circumstances where it may make more financial sense for the lender to foreclose. There may also be tax ramifications for engaging in a short sale that you should discuss with your accountant. Additionally, it may take 60 days, 90 days or even longer, depending on the lender, to get approval from the lender’s assigned negotiator for the short sale to proceed.
In addition to avoiding the hassle, complication, and time necessary to successfully negotiate a short sale transaction, there are many reasons to use our law firm to negotiate and transact your short sales:
- We do not charge the homeowner for our services.
- Lenders are more responsive to law firms in the short sale negotiation than realtors or other private companies because they know we have the ability to frustrate the foreclosure process by legal processes.
- We have extensive experience in short sale negotiations as well a in depth knowledge of real estate law that allows us to leverage the negotiations
- We have developed relationships with the loss mitigation departments of various lenders so we have a high short sale success rate.
- We free up the realtor to focus on marketing, sales and buyer acquisition as opposed to carrying the time-intensive burden of following up and negotiating the short sale with the lender themselves.
Call our Short Sale Experts at (949) 891-7799 or (949) 454-1774 or to get started. We can quickly and successfully get you through the short sale maze … at no cost to you.
Call today for a free, no obligation analysis of your situation:
(949) 454-1774 or