Short Sales
Challenging is the thought that comes to mind when I am representing a client in a short sale. The declining economy and mortgage meltdown have led to the explosion of short sales – a concept that basically didn’t exist just a few years ago.
In a traditional real estate transaction, there is only a buyer and a seller involved. The seller’s mortgage is paid off at closing, so the lender has no say in the transaction.
A short sale means the seller is trying to sell the home for a price lower than what is owed on the mortgage, or mortgages. Now you are including additional parties into the transaction that may have veto power over your sale or purchase.
This is where problems can arise without proper representation.
With the addition of more decision makers, you can get extended waiting periods. Banks are usually big and slow and don’t make decisions quickly.
While there are benefits for both buyers and sellers in pursuing a short sale, there can be drawbacks. Unfortunately, most aren’t analyzed until it is too late.
As a seller, have you considered?
- Do you have more than one mortgage?
- Is the lender waiving the deficiency balance?
- Are your finances strong enough to start paying rent now that you will have to move?
- Do other solutions have more benefit than a short sale? Like deed in lieu, loan modification, bankruptcy, or foreclosure defense.
- Potential IRS tax issues from the sale.
As a buyer, have you considered?
- The amount of time you will wait on the bank and possibly miss another opportunity.
- A home likely being sold “as is” with no warranties.
- Items a seller normally pays for, but can’t, that the lender will refuse to pay.
No other party involved in your short sale transaction should be advising you regarding these legal questions. Only an attorney can give specific legal advice.
Whether you are buying or selling in a short sale, allow me to help make it a success, after all factors have been considered carefully.
Attorney Lewis Roberts
The weight of debts that one cannot pay carries financial stress into every waking moment. It is time for this to end. Lewis Roberts, PA, offers solutions to relieve these worries. With over 20 years of experience in helping individuals overcome the burden of debt, bankruptcy attorney Lewis Roberts presents a range of options tailored to each unique situation. Clients can trust his advice on any matter related to debts, as he identifies appropriate options and explains the paths to debt relief clearly and carefully. This ensures that clients make the best decisions for their future. [ Attorney Bio ]