When facing a mortgage default, a homeowner may place their home up for sale at a price less than the amount owed on the original mortgage. If a prospective buyer agrees to a price, the homeowner can try to convince the bank or mortgage lender to take a loss on the original mortgage, instead of foreclosing on the property. A short sale occurs when the lender agrees to accept this amount.
If you are in a position to approach your bank or mortgage lender about a short sale, remember that often times, large securities companies own the actual mortgage and short sales must be approved through special boards of investors. These parties often have little to lose if they foreclose on your home because insurance is covering their financial losses. The good news for the seller is that if the bank does approve the short payoff of the mortgage, the home can be sold for a lower price, the mortgage lien is released, and the foreclosure process stops.
Why hire a foreclosure defense attorney to negotiate a short sale? Banks have lawyers on staff who graduated from top law schools and if they can find a way to take advantage of the seller of a short sale, they will not hesitate. A foreclosure defense attorney can help you understand your options and make sure that you are treated fairly.
Whether or not a short sale is the right move for you depends on your specific situation. However, every short sale seller can benefit from legal consultation prior to putting their home on the market. Contact The Freedom Law Firm today at 407-883-2618 to get in touch with one of our Orlando foreclosure defense lawyers and learn your legal options. We offer free consultations because we want to help you!