
Short Sale
What is a Short Sale?
A short sale is an agreement with your mortgage lender which allows homeowners
and other real property owners to sell their real property for less than
the amount needed to pay off entire amount owed pursuant to the mortgage
loan In a short sale, it is important to assure that the lender agrees
to write off the balance of the homeowner/real property owner's mortgage
loan; this is called the "deficiency balance" and is certainly
1 of the main benefits for a homeowner/real property owner to participate
to try to effectuate a short sale. Mortgage borrowers should never assume
that their mortgage lender will be canceling/writing off the deficiency
balance after the short sale - the contract of sale and the mortgage lender's
related short sale documents must be reviewed carefully throughout the
entire process.
Who Should Consider a Short Sale?
Although a short sale is a viable way to avoid foreclosure, it is not for
everyone. A short sale is only for those homeowners or other real property
owners who have fallen behind on their mortgage payments and are okay
with giving up their home or other real property. Although relinquishing
property rights is a difficult thing to do, in doing so you will no longer
be threatened with foreclosure and the stress and anxiety that comes with
it. Additionally, transferring your real property through a short sale
may be the only way a homeowner or other real property owner can avoid
having a foreclosure sale placed on their credit report. A short sale
will have a significantly lower negative impact on a debtors’ prospective
ability to rebuild their credit scores on file with the 3 national credit
reporting agencies (Trans Union, Equifax and Experian), than a foreclosure
sale and even the filing of a Chapter 7 and, to an even greater extent,
a Chapter 13 bankruptcy petition.
You should not be ashamed or embarrassed about considering a short sale.
Numerous homeowners throughout New Jersey and across the United States
have had to make and continue to make the same difficult decision you
are facing today.
Need a lawyer for a short sale in Hackensack, NJ?
If you are being threatened with
foreclosure, it is important to schedule a free consultation with an attorney experienced
in personal bankruptcies, as well as other debt relief alternatives such as
short sales,
foreclosure defense and
mortgage loan modifications as soon as possible. Call or
contact our office today to learn more about all of your debt relief options.