Short Sale Or Foreclosure? There Are Numerous Factors To Consider.
Real estate agents and many mortgage lenders are quick to push delinquent homeowners into accepting a short sale, instead of letting their property go into foreclosure. In a short sale, the homeowner agrees to sell the house to a prospective buyer for less than the amount owed on the mortgage. Prior to the sale, however, the homeowner must negotiate with the bank to accept the amount offered, rather than taking the house into foreclosure.
It is clear that only two parties really come out ahead on the deal, neither of which is the homeowner. The real estate agent, of course, will get commission on the sale and the banker reduces the risk of owning a property that might take a long time to sell in a depressed real estate market. The homeowner, on the other hand, loses the house with no equity in the bank.
Which Is Really The Better Option?
Be very careful before you negotiate a short sale with your mortgage lender. You may be required to sign a promissory note to cover the difference between the purchase price and the amount owed on the original mortgage. In addition, there are serious 1099 tax liabilities for any amount of the loan that the bank agrees to forgive.
If you are not sure that a short sale is in your best interest, get the straight facts about mortgage default. The Law Office of Paul L. Urich, P.A., is recognized as one of central Florida’s prominent debt relief and bankruptcy law firms. During an initial free consultation, I will explain the rules and procedures for a successful short sale and help you understand your options to help you save your house from foreclosure. If you decide that a short sale is your best solution, I can handle all documentation, procedures and discussions with the bank. I have more than 25 years of legal experience and an in-depth knowledge of the local real estate and mortgage lending community. I know the strategies that work and the processes that will lead to a cost-effective solution to your foreclosure problem.
Contact A Short Sale And Foreclosure Attorney You Can Trust
I am a debt relief agent. I help people file for bankruptcy relief under the Bankruptcy Code.