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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!

 

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The information contained in the website of Law Office of Svetlana Kaplun, P.C. is provided for informational purposes only, and should not be construed as legal advice on any subject matter.  Please read the full disclaimer.  For more information please contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115.




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