 Short Sale
What Is A Short Sale?
A short sale is a sale of
property under which the sale price is less than the loan amount
secured by the mortgage. In these tough economic times,
lenders will often agree to do a short sale when the homeowner
sells the property to a third party usually for an equivalent of
a fair market value of the home.
Why Do A Short Sale?
This option is most often visited by
homeowners who have no intention to save the home whether
foreclosure action has begun or not. Mainly it is because the
amount of the mortgage outweighs the market value of the
home. As a result of the economic crisis, many homes today
are "under water," i.e., homes have no equity and are worth
less than the mortgage. The lender will often accept
an offer that is below what is currently owed on the loan,
usually equivalent to the fair market value of the home. As a result, the homeowner will be released from his or her
mortgage obligation but may, however, have some tax
consequences. The main benefit though is that the
homeowner will no longer be responsible for the original
debt.
How Do
You Qualify For A Short Sale?
Short sale process begins with
listing the property for sale. When the homeowner receives an
offer that is below the mortgaged amount, a short sale
application, along with the hardship letter and a contract of
sale should be sent to the lender for evaluation. The main part
of this process evolves around the lender determining the
current market value of the property by obtaining an appraisal
or a Broker's Price Opinion (BPO) from an independent
evaluation appraiser.
Click
here for eligibility under HAFA
(Home Affordable Foreclosure Alternatives Program).
Why Do
You Need An Experienced Attorney To Help You With A Short Sale?
Just like
you used an attorney when you originally purchased the property,
you will need an attorney to represent you at closing and
throughout the entire process. Most people cannot
understand the legal jargon when signing legal documents, such
as a contract of sale or calculating closing costs.
However, a short sale is a much more complicated transactional
process that also involves negotiations with the bank and submitting a package
for a short sale approval prior to the closing taking place.
Oftentimes, this process can be complicated, repetitive and time
consuming if the purchase price does not match the bank's BPO.
Just remember: the bank wants to
avoid foreclosure but it also
wants to recover as much as possible of its loan. Appraisals
used by the bank will not necessarily match what the homeowner
thinks is the fair market value. As a result, the process could be
lengthy and complicated but with the help of professional staff
at the Law Office of Svetlana Kaplun, P.C. could be less
burdensome and stress-free!
As a New
York State Licensed Real Estate Broker, Attorney Svetlana Kaplun
has the expertise to assist interested homeowners in all steps
of the short sale process including: bank negotiation and short
sale approval, property listing and sale.
Call our firm today
at 718-444-1115 and our
experienced staff will provide the utmost attention to your case to deliver the best outcome for you!
|
