For those facing foreclosure, a short sale may be a viable option that will allow the homeowner to
avoid foreclosure altogether or minimize and debt owed to the lender. A short sale is the sale of real
estate for less than the amount of the mortgage. In many cases the lender will agree to allow the owner
to sell the property and will release the mortgage. However, short sales have many risks that must me
addresses with a competent professional and such risks include being liable for all or a portion
of the debt even after the sale and possible tax consequences.
The most important stage of the short sale process is the negotiation with the lender to waive
the balance of the loan after the sale and this occurs once the offer has been submitted.
Most homeowners and real estate agents are not familiar enough with the process to maximize
leverage in the negotiations and are not aware of the policies and procedures that must be
followed. The negotiations should be handled by a competent attorney so that potential
liability can be minimized or eliminated during the foreclosure process. By allowing a
attorney to control the entire process, including all negotiations and court
proceedings, it is often possible to use legal defenses to gain the upper hand in
the process to avoid foreclosure.
The lender is not required to accept a short sale in full satisfaction of the debt.
The lender has the right to approve or reject the short sale offer as well as any
settlement of the debt so knowing your rights is essential to obtaining a
favorable outcome. Homeowners should consult with an attorney to ensure that any
liability is avoided and in order protect of other assets, prevent wage garnishments
or defend other collection activities.
Tiller Law handles short sales from start to finish for our clients using both our
knowledge of law and real estate. The managing member of Tiller Law is both an
attorney and licensed real estate agent. Call our office today to explore
your options before acting.
Free Consultations and Flexible Payment Plans are available at Tiller Law