A short sale is another common method that Milliennium Law Group uses to help borrowers avoid foreclosure. A short sale is where you, as property owner, enlist the services of a real estate broker to list your house for sale, and seek to allow the lender to accept less than what you owe on your loan as full satisfaction of your loan. As with deed-in-lieu of foreclosure, certain lender-specific conditions may apply, and tax consequences may need to be investigated with a CPA or tax attorney.
Our law Firm wants you to know that banks are not interested in owning real estate. They make loans and at the end of the day, they are only interested in recouping their investment. They do not want to own your home. They are willing to negotiate a settlement. Proper legal advice is of the essence.
There are many benefits to doing a short sale.
A short sale is an excellent option for borrowers who cannot pay their mortgage. Our attorneys will negotiate the best deal for you. Contact us for a free consultation!
- Banks are willing to take less money than what they are owed to avoid having to go through the foreclosure process, which is expensive to them.
- Lenders agree to accept a short sale when a borrower is facing some kind of financial difficulty or hardship, or are unable to pay their mortgage for whatever reason.
- Banks agree to short sales because they do not want to foreclose, and it is their last opportunity they have to recoup what they have lent.
Our law Firm wants you to know that banks are not interested in owning real estate. They make loans and at the end of the day, they are only interested in recouping their investment. They do not want to own your home. They are willing to negotiate a settlement. Proper legal advice is of the essence.
There are many benefits to doing a short sale.
- First: in most cases any balance owed to the bank after a short sale is forgiven. Let me put it this way: the difference between the amount that is owed to the bank and the amount the bank is paid off at the short sale closing is written off by the bank. This means that the borrower will not owe this money to the bank.
- Second: since the passage of the Debt Forgiveness Act in 2007, there are no tax consequences for the forgiven debt on a mortgage related to a primary residence.
- Third: and equally as important, a borrower's credit will improve much faster after a short sale than it would after a foreclosure. In many cases, the credit of a borrower can return to normal in as little as 12 to 18 months after a short sale.
A short sale is an excellent option for borrowers who cannot pay their mortgage. Our attorneys will negotiate the best deal for you. Contact us for a free consultation!
