Jacksonville Bankruptcy Lawyer Blog
If you are behind on your mortgage payments, and think you can no longer afford your home or are simply ready to walk away and start over, a Short Sale might be a good option for you. A Short Sale is when you sell your home for the highest value possible notwithstanding that the proceeds from the sale will be less than your outstanding mortgage balance. The biggest short fall of a Short Sale is that you remain liable for the deficiency, which is the difference between the proceeds from the sale and your mortgage balance. However, in many Short Sale negotiations, this deficiency can be negotiated away. Thus, leaving you without any further liability for the home or mortgage.
The Short Sale Process is simple and is as follows:
– Begin the Short Sale process by hiring a realtor to list the property for sale as a Short Sale. Make sure the realtor you choose is familiar with the Short Sale process.
– The realtor lists the property for sale as a Short Sale.
– The realtor works with you and other realtors to show the property to interested buyers until a fair market offer is received.
– The offer is submitted to the bank for review along with many other financial documents the bank may request.
– The offer is then approved, countered, or denied.
– If needed, a waiver of deficiency is negotiated or a counteroffer is submitted.
– After approval, closing takes place anywhere from 30 to 45 days after receipt of the approval.
Although a Short Sale can be a much better option than foreclosure, it is important to note that a short sale will still hurt your credit report. This is because you must be behind on your mortgage payments before a bank will consider a Short Sale offer, and the missed mortgage payments will be reported to the credit bureaus. However, a Short Sale will prevent a foreclosure from being on your credit report and may not be as damaging to your credit score.
If you think a Short Sale may be the right option for you, contact a foreclosure attorney at the Law Office of David M. Goldman PLLC by calling 904-685-1200 to discuss the process further. A foreclosure attorney can also help you with the Short Sale process in order to negotiate a waiver of deficiency.