Florida residents who frequent any of the many beaches may know what it is like when the tide is high and the waves are rough. Swimmers — or even waders — may feel as if they have complete control, and then a wave bowls over them. That feeling of being unable to breathe and at the mercy of the current is where financial experts get the term “underwater.” Homeowners may feel this way if they owe more on their house than it is worth, particularly if they are behind on house payments.
If a homeowner is underwater, selling the home may seem impossible since a potential buyer would likely be unable to finance the amount owed. Nevertheless, selling may be the most practical step if the owner can no longer keep up with the payments. The situation gets worse each month until foreclosure looms.
Some underwater homeowners find relief in a short sale. Through a short sale, a homeowner can negotiate with the lender in the hope that the lender will agree to accept a lower amount for the home. The process of a short sale is much more complex than a regular home sale. The lender is not obligated to accept a lower amount than the owner owes, and the lender may determine that foreclosure is the better financial option. However, foreclosure is seldom the best option for the homeowner.
Those in Florida who are drowning in a home with an underwater mortgage may wish to explore the option of a short sale. Since negotiating with a lender is often a complicated and delicate balancing act, many find it helpful to have advice and assistance. That assistance is available in an attorney who is devoted to helping homeowners who are behind on house payments.
Source: thebalance.com, “How to Do a Short Sale on a Home“, Elizabeth Weintraub, Oct. 4, 2017