Short Sales

Short sale patienceA short sale is used when the mortgage balance is greater than the sale value of the home. If the borrower can no longer afford the home or decides to sell, a short sale may be the best option. The lender must grant the borrower permission to sell the house for less than what is owed. It is important that the homeowner be protected during this process so the lender does not try to foreclosure on the home at the same time the short sale process is on going. Also, there may be impediments to the short sale such as other liens on the property. These potential obstacles must be negotiated and resolved before a successful short sale can be concluded.  Finally, the borrower must be legally protected so that after the short sale is completed, the banks does not come after the owner for the difference between the sale price and the mortgage balance. A competent law firm will be able to protect the homeowner from the legal problems involved in a short sale.

The reason a law firm is needed is that a short sale requires a lot of coordination.  First, a competent realtor must be engage to list the property.  Once there is an offer, a contract of sale must be signed between the short seller and the potential buyer. Then a short sale package has to be submitted to the lender.  This includes not only the contract but financial information about the seller.  Many lenders may reject the offer and want more money.  In that case the application has to be submitted to a value dispute.  This could entail negotiations and an appraisal.  Often times the lender will put the property on an on-line auction site.  All of this increases the time and complexity of the short sale.  While all of this is going on the buyer must obtain financing for the purchase.  In order for the short sale to be concluded, there has to be one central entity to communicate and coordinate between all the parties.  That is where an experienced and knowledgeable law firm is the most valuable.

Copyright © Mortgage Help Info Center