What’s a Short Sale?
A short sale is a negotiated agreement with your mortgage bank or lender where our team speaks with the bank to negotiate a settlement on the sale of your home so that it clears up your debt and fulfills your obligation on the mortgage.
How long does a Short Sale Take?
It normally takes the bank or lender around 45 days to approve a short sale buyer. During this time you cannot replace your current buyer contract with that of another buyer even if its for more money. Every change in buyers takes another 45 days to evaluate which might mean that you could run out of time if the first buyer backs out of the deal, leaving you in foreclosure sale with no options.
Do I get equity from a foreclosure sale?
Generally you are negotiating with the bank for a payoff settlement through the short sale and the proceeds all go to the bank or lender. If however you are early enough in the process, meaning you just find out about the lis pendens filed against you, and you put your home up for sale right away, our team of professionals may be able to sell your home before short sale and you may be able to earn equity on the sale of your home. Yes, if you act fast, you can take equity, but it it goes to short sale, you will have nothing.
Who pays the real estate brokerage costs for the Short Sale?
The bank or lender pays. We have even been able to negotiate move out expenses for homeowners.
Can’t I hire a Lawyer to help me?
You can do that as part of foreclosure defense. Lawyers generally charge you a monthly fee ranging from $500 to $700 per month until the court date. Sometimes, this works as a delay tactic for the inevitable, foreclosure and eviction from your home. The catch is that once the home is put for sale on the courthouse steps as part of the foreclosure auction, you may end up with what the law calls a deficiency judgment. What does this mean? It means that after a few years of paying your lawyer, the bank or lender has incurred around $100,000 in costs, fees, penalties, court fees, attorney’s fees, etc. Yes, that means that if your initial debt claimed in the first filing of the lis pendens against you was $100,000 you owed on the mortgage, at the end of 2 years you paid your attorney $12,000 and now owe the bank $200,000. If the bank sells the home for $110,000 at auction, they may choose to file a deficiency judgment against you for the remaining $100,000. The judgment may give them the right to garnish income tax returns, or place a lien on another property you already own and have paid off in case you sell it.
Receive a FREE EVALUATION AND ASSESSMENT of your current foreclosure scenario and we will tell you what your options are and what negotiations with your bank or lender might bring.
Call us today, every day counts, at (786) 325-2222.