Homeowners struggling with the issue of foreclosure do still have some options open to them, and one is known as the short sale. It is an arrangement in which your bank or lender allows you to sell the property for a bit less than what you still owe on loan. They do this to avoid having to foreclose and lose even more than they will by agreeing to a short sale. The accept all of the proceeds of the sale and then release the lien they have on the property. Can you just work with the bank on your own to do this? Yes, but a short sale attorney can protect your interests and so much more.
An Attorney and Not the Realtor?
It is a very common question and a mistake made by some who are contemplating a short sale. They believe that they can work with their real estate agent to negotiate the sale and interact with the bank to make it all happen. However, a realtor is never qualified to supply legal advice about any part of this sort of deal. Yes, they have opinions and may even have experiences, but they have not clear the idea about the right language to include in the documents to ensure your liability is limited and that you emerge from it as unscathed as possible.
How the Attorney Helps
Legal expertise is one thing, but there are also many potential scenarios that can emerge in any short sale transaction, and it is the attorney who can ensure you understand what is in front of you. As one expert said, “While the lender may agree to release its lien in exchange for the short sale proceeds, it might not release you from personal liability on the debt and could potentially come after you for a deficiency judgment.” For instance, you owe $150k, sell for $100k and owe that outstanding $50k. Your attorney can alert you to the risk of a deficiency judgment within any arrangements made with the lender. They can then be asked to help negotiate a waiver of this deficiency or even negotiate a settlement for a much lower amount.
Do you have a risk of foreclosure and think that a short sale attorney in Woodridge can help? If so, Covert & Covert, LLP specialize in home loan modifications, foreclosure issues, real estate sales and short sales.