With the downturn in the economy and the housing market, property values have fallen and homeowners are having a more difficult time selling their homes. An experienced Clermont Short Sale Lawyer can explain options you may have if you are upside down on your mortgage and discuss whether a short sale is right for you.
If a home is sold on “short sale,” this means the owner of the home is selling the property for less than they owe on their mortgage. In a short sale situation, the sellers have a deficiency balance with their bank. For example, say the sellers owe $200,000 on an existing mortgage with their bank. The home itself has dropped in value and the best offer they have been able to secure from a potential buyer is $150,000. This would leave the sellers still owing the bank $50,000 even after they sold the home. In some circumstances, the bank may agree to allow the seller’s to sell the home on “short sale.”
In general, the mortgage lien holder (the bank) must approve the short sale before a seller can proceed with one. This adds another layer to the transaction. It’s not just between the buyer and seller anymore. Usually a short sale is the last resort for the seller before bank foreclosure. Perhaps the most important issue is what happens to that deficiency balance. In many cases, the bank will approve a waiver of the balance owed. There are serious tax and credit rating consequences to the seller after the short sale is approved and completed. An attorney should be consulted to help you determine whether it’s a good option for you. It’s important to understand the impact a short sale will have on your financial picture going forward.
For more information about buying and selling homes on short sale, contact a knowledgeable Clermont Short Sale Lawyer. To make an appointment with Merideth Nagel, P.A., Attorney at Law, call 352-394-7408 or toll free at 877-580-6868. Serving Lake, Orange, Sumter and Marion Counties.
Serving West Orange County, Lake County, Sumter County & Marion County
The more I get to know her the more convinced I am that she is the right attorney for me. The compassion and integrity I have seen is quite remarkable and I highly recommend you use her office to service… ~ Kelly,
Ms. Nagel represented my wife and I in a bankruptcy case and also in a recent real estate transaction. I felt compelled to share our experience. Ms Nagel and all of her staff handled everything in a very professional matter… ~ Mike,
Merideth Nagel has been a help to me, over the last 10 years, for multiple legal issues! As her client, and as a realtor who utilizes her real estate and title services, Merideth, along with her phenomenal staff, has afforded… ~ Tiki Jackson,
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“We utilized Nagel Law to assist us with a real estate transaction a little over a year ago. Merideth and her entire staff treated us with the utmost professionalism as well as eased our minds pertaining to this transaction. We… ~ Lynette, Orlando