At Foreclosure Attorney in Westchester NY, many of the services that we provide are intended to keep you in your property through managing difficult payment situations, but it’s possible that you’re simply in too deep, and a sale process that avoids foreclosure (and the repercussions associated with foreclosure) is the more sensible course of action. If you’re in those kinds of circumstances, it’s worth looking at a short sale. Generally speaking, we advise our customers to look at short sales once they’ve already examined loan medication and repayment plan options. Below, you’ll find some more information on exactly what a short sale is, how it’s to your benefit, and why we’re the team that you should place your trust in to take care of the process. If you have any questions, our customer service team is always available at your convenience.
What is a Short Sale?
It’s possible that you’ve heard of a short sale before, but you’re not quite certain exactly what it is. In simple terms, a short sale is where a property owners sells their property to a third party, but the amount that they’re selling it for is less than the total sum of their mortgage debt. For this process to take place, you’ll need to get the permission of the lender who you owe the mortgage payments too. Short sales are always carried out to avoid the possibility of a foreclosure, but the implications of a short sale are still serious.
As stated previously, short sales are pursued by borrowers because they’re trying to avoid a foreclosure. In this process, the lender agrees to drop their lien if the short sale goes through, and the foreclosure is finished in that case – which means you avoid having a foreclosure on your credit history. A foreclosure can be really harmful to your credit, but even a short sale is going to inflict damage to your credit. Of course, not having the stigma of a foreclosure on your credit history is very likely worth taking the effort to pursue a short sale.
When a short sale takes place, there will be a difference in the amount that you get for the property and the amount owed on the mortgage (this is what makes it a short sale) – this is the deficiency. It’s possible that the lender could pursue you for the amount owed (the deficiency) after the short sale is completed. This is why it’s important to use an attorney. We can make sure that the lender agrees, in concrete terms, not to pursue a deficiency judgment after the short sale is completed.
Another reason that you might want to go down the short sale avenue is that a lender might offer you relocation assistance in the event that the short sale goes through. This is a relatively small, but worthwhile, payment that gives you a base to find other accommodation once the short sale goes through. We can get this worked into the agreement on your behalf.