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 (201) 878-4630 or contact our office today to learn more about all of your debt relief options.