Short Sale: An Alternative to Foreclosure
Maybe you bought a house when the real estate market was at its peak and now it is valued at thousands of dollars less then what remains on your mortgage. After losing your job, receiving a pay cut, or going through a divorce you may find that you can no longer make your mortgage payments. You'd like nothing more than to walk away, but you cannot get any equity out of the house. Instead of letting the house be foreclosed upon, you have the option of trying to negotiate a short sale.
As part of a short sale, our licensed realtor will help you list your house on the market at a lower price than what you currently owe on the mortgage. Even though a buyer's offer will not be enough to pay off your mortgage, we will take the offer to the bank and negotiate so that they will accept the offer as payment in full for the remaining amount on your loan.
If you think that a short sale might be appropriate for you, contact Sommer & Engelhart, Attorneys at Law, to set up a no-cost consultation. Call 866-446-6298 or contact us online. Attorney Sommer was recently featured in a NJ.com article about short sales in New Jersey.
Things To Know About a Short Sale
Our long-standing relationships with mortgage lenders, title insurance companies, realtors and surveyors, allow us to employ a team approach to short sales. Having focused over 30 years on short sales, we know how to negotiate the best resolution for you.
If you are considering a short sale, there are a few things to know:
- The bank will pay all of the closing costs.
- Banks prefer short sales to foreclosures because on average, they save the bank about $30,000 in maintenance, taxes and sales fees.
- A form from the Department of Housing and Urban Development (HUD) must be completed and provided to the bank before a short sale can be approved. This form will include information on all closing costs and transfer taxes, so that once the amount is approved there will be no hidden fees. These forms must be completed by a licensed attorney.
The long and short of short-selling homes
To learn more about how we can help you list your house and negotiate a short sale, contact us online or by calling 866-446-6298 to set up a free initial consultation with one of our lawyers.
