Short Sales to Prevent Foreclosure

If you owe substantially more than your home is worth and you are having trouble making the payments or need to sell for some reason, a short sale may be something to think about. We don't charge for your initial consultation and can help you decide whether this is the right option for you. The potential benefits of doing a short sale are:

  • The difference between what you owe the bank and the sale price of your house could be forgiven.
  • A short sale will likely have much less of an impact on your credit than continuing to get behind on payments or defaulting.
  • If things are dire enough for your bank to be talking about foreclosure, a short sale can help you avoid that. Having an auction take place on the front lawn can be traumatic and embarrassing.
  • Going through foreclosure can prevent you from buying another house for up to six years. With a short sale, you may be able to purchase another home in as little as two years.
  • The foreclosure process will likely end up with you not only out of your house, but also responsible to your mortgage lender for the shortfall on the mortgage and potentially a bunch of other costs and fees. A short sale may allow you to walk away from your home and your mortgage without owing anything more.

Contact us to set up an office appointment to discuss your short sale options with one of our knowledgeable real estate law attorneys.

Do you qualify for a Short Sale?

You may qualify for a short sale if:

  • the value of your home is less than you owe the bank
  • your mortgage is nearing default status
  • you have a legitimate hardship

While the first two criteria are pretty clear, "hardship" is kind of an abstract term and means different things to different people. The following circumstances are NOT considered hardships:

  • Poor personal buying choices — arguing that your hardship is the result of buying expensive "toys" like high-end electronics or home entertainment equipment will not be very convincing to your lender.
  • Purchasing another house — your desire for another newer, bigger, or just different house is not a hardship.
  • Bad neighbors — even if your neighbors are doing things next door that will likely lead to them being raided, arrested and charged.... still probably not a hardship.

How does it work?

  • Start by coming in to talk to us. When you come in, bring all your loan information for all the loans on the property. Also bring all recent correspondence from your mortgage lender(s)
  • We'll talk about your hardship and help you think about how best to clearly and thoroughly communicate to your lender all the trouble that has led you to the point of needing to do a short sale. This is important because you will need to write a "hardship letter" to begin the process.
  • There are local real estate brokers we work with frequently who are great at handling short sales and getting the best possible offer on your property.
  • We negotiate with your mortgage lender while they think about what you owe on the property and decide how much less they are willing to take in order for both you and them to avoid the difficulty of foreclosure.
  • We continue to represent you throughout the negotiations and the short sale process right up to the closing.

Can I do a short sale myself?

  • After reading all this, some folks might be wondering if they could manage the short sale process by themselves. The problem is that doing a short sale is extremely challenging and time consuming. The banks quickly move through a LONG checklist of tasks that you need to complete in order to keep moving the short sale process forward. While the whole process, start to finish, can take several months, the amount of time you have to complete each successive task is remarkably short. Completing your short sale can quickly become an overwhelming and confusing full-time job. On the other hand, we do this every day. We know how to successfully manage short sales and help you cleanly get out of a difficult situation. Don't try it yourself. Let us help.

If you feel that you are in a hole with your mortgage, it is likely only to get deeper and more difficult to dig out of. Talk to us about a short sale today: call 508-859-1775 or contact us online.