A Short Sale Allows a Property Owner to Sell their Property for less than the Payoff on their Mortgage and to Obtain Forgiveness for the Balance of the Mortgage.
If the client has equity
in the property and cannot afford the regular payments
necessary to retain the property, a voluntary sale, pursuant
to a contract of sale, is often a solution. If a
homeowner has decided that their best option is to voluntarily
sell their property, a voluntary sale can save for the
client the equity in the property which would be realized
upon such a voluntary sale.
A short sale is a voluntary sale in a situation where the
bank that holds the mortgage agrees to take less than the
full payoff for the mortgage in full satisfaction of the
mortgage. This is commonly sought by a homeowner who wants
to sell but whose house is "upside down" or where the mortgage
balance exceeds the fair market value of the property.
Our office can help you negotiate a short sale since such
negotiation can be involved with the bank asking for information
and documentation to support such request.
Because a foreclosure action creates deadlines and pitfalls
that are not present in a regular sale of a property, a
client needs to have proper representation in selling a
house that is in foreclosure. There are issues at
both the contract and closing stage that need to be resolved
for the foreclosure action to be properly resolved upon
a sale of the property. If the client is selling
the property while protected by a Chapter 13, there are
additional considerations that are essential for the client
to properly evaluate.
The Law Office of Ronald D. Weiss has helped many homeowners
by representing them in real estate deals, especially
when they are selling their property to prevent foreclosure.
Often a voluntary sale is the client's ultimate goal
while the client pursues other legal options to hold
back the foreclosure process.
Many of the voluntary sales that proceed in foreclosure
and pre-foreclosure situations are "Short-Sales" which
give the mortgage holder less than its full payoff based
on the inability to sell the house to satisfy the full
mortgage payoff. Short sales require a negotiated settlement
with the mortgage holder which needs to be convinced that
it should quickly agree to a short payoff (please see our
Section on Negotiated
Settlements). Short sales also require the drafting
of a real estate sales contract to contain special provisions
protect the homeowner.
If you are considering a voluntary sale of your property,
the Law Office of Ronald D. Weiss, P.C., can also assist
you by recommending real estate brokers who specialize
in selling under such conditions and who would charge a
discounted commission.
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