Negotiating a short sale can be complicated. Real estate agents are not always aware of the consequences of an improperly executed short sale. Often a seller only later finds out that the sale did not relieve he or she of the debt on a second mortgage. Sometimes the seller is not aware that they may have to pay taxes on the difference between what the house sold for and the amount owed on the loan. Additionally, there are times when the real estate agent just does not fight to get you the best value for the deal.
The bank has attorneys reviewing the deal to make sure it is in their best interest. In order to preserve as much of your financial well-being as possible, you should also obtain legal counsel.
Because our lead attorney is also a real estate broker and has been in the field for nearly 20 years, we have the special expertise to assist you through this stressful and complicated process.
What we have learned and the pitfalls you must consider
- Depending on your financial circumstances, a short sale may not be in your best interest.
We have counseled clients who completed short sales only to find out that the bank with whom they were negotiating only forgave the loan on the first mortgage and not the second. Eventhough the bank held both the first and second mortgage. Once the short sale on the first was completed, within a few months, they sued the client for the full amount due on the second.
Short sales take a very, very long time to complete and negotiate. For those of you that have gone down that path, you know it is a long road filled with uncertainty and broken promises.
In situations where you are severly upside down on your mortgage and are unable to negotiate a timely and favorable short sale, bankruptcy may be your better option. Depending on your situation, bankruptcy may allow you to give the house back to the bank and not have to worry about the bank coming after you for the short fall diifference between what is owed and what the property is actually worth. It is a cleaner and more certain result than the short sale.
If you can obtain a favorable short sale, that is best. However, the short sale generally benefits the bank more than it benefits you.
Thus, it is important to have a knowledgable attorney on your side to make sure the process goes smoothly.
Our lead attorney can provide valuable assistance in which ever route you choose to take. Whether you need help negotiating the short sale, or if it is determined that bankruptcy is the better route, we are here to help.
