A mortgage foreclosure can occur when a mortgage lender brings a lawsuit in an attempt to assume ownership of a property as a result of missed mortgage payments. There are many reasons for a homeowner to default on their payments including the inability to pay their mortgage payment due to unemployment, excessive debt, hospitalization, or divorce. Many people don’t know this but there are many Foreclosure Alternatives to avoid a foreclosure judgment being entered against you. One of the foreclosure alternatives that homeowners can take advantage of is a short sale. A Short Sale is a loss mitigation remedy which allows homeowners to sell their home for less than the remaining balance on their mortgage. If your mortgage company agrees to a short sale, you will be able to sell your home and even if there are not enough proceeds to pay the mortgage in full, the bank will agree to accept this short payoff of the mortgage.
There are many benefits of a short sale. One benefit is that you will also be able to start repairing your credit sooner than if you went through a foreclosure. The time you would need to buy a house again may also shorten. Instead of a foreclosure judgment being on your credit report for approximately 7 years, you may be able to get a mortgage to purchase a home in as little as two years.
Although a short sale offers homeowners an excellent alternative to foreclosure, the application process can be time-consuming. Fortunately, the homeowner usually does not have to pay any money out of pocket to complete a short sale. An attorney can be really helpful when it comes to short sales because they can give you advice and negotiate the best deal for you with the mortgage lender. There may also be secondary lien holders that need to agree on short payoffs as well. However, even though the lender might agree to release its lien in exchange for the short sale proceeds, you have to make sure that they release you from personal liability on the debt, because they could come after you for a deficiency judgment. A deficiency judgment is the difference between the amount of proceeds going to the bank and the total mortgage debt. Hiring an attorney when you’re going through the process of the short sale can help ensure that you’re not surprised by any of the bank’s antics. A real estate attorney will provide you legal advice when it comes to the various documents that you will need such as your taxes, paystubs, bank statements, and any contracts that you might need to sign. They’ll be there with you every step of the way. Completing a short sale is a great foreclosure alternative that can help you get out of bad debt, instead of falling deeper in with a foreclosure judgment.
Thompson Legal P.A has years of experience working with clients who are going through the foreclosure process and looking to short sale their property in Dade and Broward County. They understand the complications that can occur when you’re going through the short sale process and help prepare you for anything that might come your way. If you or a loved one is in foreclosure, and wishes to proceed with a short sale to avoid a foreclosure judgment, don’t hesitate to call Thompson Legal, P.A at (954) 510-3366