Boca Raton Short Sale Lawyer
A short sale is when a homeowner sells his or her home for less than what is owed on it. The lender agrees to accept the proceeds in exchange for releasing the borrower from the lien even though the proceeds do not completely cover the remaining debt. Short sales are typically used as a means of avoiding bankruptcy or foreclosure.
While a short sale serves as an excellent opportunity for a homeowner to relieve him or herself of an oppressing financial burden, if not handled properly, it can leave that homeowner in worse shape than before. For this reason, it is essential to work with an experienced Boca Raton short sale lawyer. The right attorney can negotiate on your behalf, make sure that all lenders involved follow through with their end of the bargain, and even reduce or eliminate your liability for deficiency. Before you agree to anything, contact the Boca Raton short sale lawyers at Nowack & Olson, PLLC, today.
Lender Approval is Key to a Successful Short Sale
Banks do not host short sales. They hold foreclosures, but they do not host short sales. If you hold a short sale without your bank’s knowledge, you risk being slapped with a deficiency judgement. The bank does not care whose name is on the home’s title—it only cares whose name is on the mortgage loan. If you sell the home for less than what it is worth, your lender can and will sue you for the deficient amount.
You can avoid this by obtaining the bank’s approval prior to cutting a deal. Approach your lender and explain your situation. Explain that you can no longer afford to make payments, that your home is not worth what you owe on it, and that you want to risk foreclosure by recouping as much money on the bank’s behalf as possible. Your bank is likely to see your side of the story, especially if the market is bad or if you bought your home at the height of the housing boom. Also, most lenders do not want to risk losing more in a foreclosure and are likely to allow homeowners to accrue the costs of selling.
Once you get the bank’s approval, have your Boca Raton short sale lawyer draft all contracts and legal documents. These are essential if you want to avoid a deficiency judgement, or at least having to pay the full remaining amount. Sit down with your lawyer, lender, and its lawyers to sign the documents and make them official.
Negotiating a Reduced or Eliminated Deficiency Judgement
Just because your lender agrees to a short sale does not mean that it agrees to release you of your personal liability for the debt. The bank may still come after you with a deficiency judgement, which you would be forced to pay. An attorney can address the potential issue for a deficiency judgement during negotiations and either negotiate it downward or fight to have it eliminated entirely. If the lender agrees to waive the deficiency amount, your attorney can make sure that said waiver is in writing and signed by the lender itself.
Contact Our Boca Raton Short Sale Lawyers Today
A short sale may seem like a quick and easy way to free yourself of a burdensome debt, but if not approached properly, it could do you more harm than good. To make sure that you benefit from your short sale, work with a Boca Raton short sale lawyer throughout the entirety of the process. Our lawyers at Nowack & Olson, PLLC, are equipped to help you through this difficult time in your life and prevent future hardships by ensuring that the right contracts and documentation are in place. Contact our office today to discuss your options more in depth.