With today’s unstable economy and fluctuating prices of the real estate market, an increasing number of homeowners are finding it difficult to stay current with their mortgage payments. Unemployment, emergency expenses, divorce, fraud, and excessive obligations are just a few reasons why a homeowner may not be able to make payments of their mortgage loan. Under such circumstances, going for a short sale may be the best option available to you. However, there are several legal intricacies involved in the process which may require working with an experienced attorney.
While some people may consider hiring an attorney an additional expense, there are many good reasons as to why doing so can benefit you in the long run. Here are a few of them:
Excellent Negotiation Skills
The foremost step is to get approval of your mortgage lender of the short sale. This will involve convincing the lender to release your home’s mortgage lien in exchange of the money from the short sale. However, most lenders are not in favor of a short sales, as they want to be paid in full instead of settling for a lesser amount. While lenders are reluctant in giving a go-ahead, it is not impossible to get their approval.
A real estate attorney will assess all the factors your lender may take into account when reviewing your request for a short sale, such as your income, assets, change in circumstances or hardship, and the value of your home in the market. Using their exceptional negotiation skills, your attorney will make sure that all these factors are represented in the best light in order to persuade your lender to give their approval for the short sale.
Reliable Legal Advice Regarding the Short Sale Documents
Just like any real estate transactions, short sales require a lot of legal paperwork, each of which entails different legal consequences. With a real estate attorney by your side, you will not have to worry about any legal pitfalls that may arise from the terms of any legal documentation.
Effective Problem Solvers
A short sales takes several weeks to arrange buyers and close the deal. During this time, there is a high chance for problems to arise, especially when multiple lienholders are involved in the process. In some cases, one mortgage lender may agree with the settlement amount, while another may demand more money, which may delay the short sales or even put off the buyer. A real estate attorney is experienced in handling such situations and make sure that all parties are on the same page from the start to close the deal in a timely manner.
Eliminate or Reduce the Short Sale Deficiency
In most short sales, the outstanding mortgage debt and the sale price vary, leaving a certain amount still due on the homeowner. This difference is known as deficiency, and a lender can make a claim after the deal has been closed to pay the remaining amount. However, a real estate attorney can negotiate with the lender and work out a settlement where you may not have to pay the deficiency or reduce the amount and make it easy for you to pay.
Short sale is a complex process that should not be handled alone. Having an experienced and knowledgeable attorney by your side will give you peace of mind that everything goes smoothly and you are safe from any legal repercussions during and after the short sale. Contact the Fitzgerald Law Firm, P.C. to discuss your case and evaluate your options.