Why You Should Hire A Residential Real Estate Lawyer To Help With A Short Sale
A short sale does not mean that the process will be quick and easy. In fact, it may take quite a bit longer than a regular transaction. The reason it is called a short sale is that the lender is willing to take less than what you owe to wipe out the remaining balance. It can be a very good option for you if you are behind on your mortgage payments and facing possible foreclosure. However, if you have decided to try to do this, you should hire an experienced residential real estate agent. Here are a few reasons this is important.
Deficiency Judgment
While the lender agrees to the selling of a property at a lower amount than what you owe on it, they may also go after you in a personal lawsuit for the difference. For example, if you still owe $150,000 on the property and use a short sale to sell it for $100,000, the lender can get a judgment against you for the other $50,000. They may be able to have your wages garnished or possibly take money from any bank accounts or other assets you have. A lawyer will work with the lender to either lower the deficiency amount or get it waived completely. They will file hardship paperwork that will protect you and your assets from any judgment against you.
Keep a Foreclosure at Bay
Your lawyer will also talk with the lender to keep them from starting the foreclosure procedure. This will give you time to find a buyer. Once a buyer is found, it is much easier to have a short sale approved. Lenders do not want to have to deal with trying to sell property they have foreclosed on because they often have to do a lot of maintenance on it and every month they do not sell it they are out money. Having a buyer who is already approved for the loan amount will encourage the lender to take the lesser amount in order to save money in the long run.
While a real estate agent is important to help you find a buyer, a lawyer is the one who can help make the lender agree to the short sale without causing you financial hardship in the future. Things happen in life that can affect your income. A mortgage lasts a long time; the housing market is bound to change during the life of the loan. When the market drops, and you cannot find a buyer who will pay at least what you owe, a short sale might be your only option against foreclosure. Talk with a residential real estate lawyer to find out how a short sale can help you.
Contact a lawyer like Steve Butcher Sr for more information and assistance.
