As the housing crisis gripped the nation and Central Florida, the term "short sale" came into common use, although many people misunderstand exactly what the term means.
A Basic Definition of a Short Sale
When facing a default on a mortgage, a homeowner may place the home up for sale (or find a buyer) at a price less than the amount owed on the original mortgage. If a prospective buyer agrees to a price, the homeowner must go to the bank or mortgage lender to try to convince them to take a loss on the original mortgage, rather than foreclose on the property. Most people think that bankers would rather accept a loss of a few thousand dollars, rather than hold an inventory of foreclosed houses on which they must pay taxes and maintenance costs. Surprisingly, bankers have proven very reluctant to accept a short sale and have spent the past couple of years building up an inventory of foreclosed properties.
If you are in a position to approach your bank or mortgage lender about a short sale, you should be aware that these decisions are made by parties other than your friendly local banker. Often times, large securities companies own the actual mortgage and short sales must be approved through special boards of investors that often have little to lose if they foreclose on the house because insurance is covering their financial losses.
If you are a homeowner in Central Florida who is facing foreclosure and have the possibility of a short sale, talk to an attorney at the foreclosure defense law firm of Salfi & Sprysenski, P.A., in Altamonte Springs. We are the recognized leader in foreclosure defense solutions for distressed homeowners in Central Florida. We know the process and we know how to appeal to the real decision-makers in the short sales process.
Give the Keys Back? Sometimes a Deed in Lieu of Judgment Makes Sense.
If the amount you owe on your mortgage is far more than what your home is worth, you may want to find a way to walk away from the property. But many homeowners fear a deficiency judgment being entered against them. That is, homeowners don't want the bank to pursue them for any amount they may owe over what the property is actually worth. If you are in this situation, you may want to pursue a deed in lieu of foreclosure.
A deed in lieu of foreclosure allows you to hand over your property to the bank, in exchange for the bank's agreement not to pursue you for any deficiency between the amount you owe and what the property sells for. Often times, a homeowner may also be able to receive a cash amount along with the deficiency waiver, to assist the homeowner with costs associated with moving from the property. Deeds in lieu often times involve tax consequences and other legal considerations that only an attorney can assist you with. At Salfi & Sprysenski, we understand how best to use foreclosure litigation to assist clients who wish to pursue a deed in lieu of foreclosure. We also make sure clients understand any legal consequences which may result from the homeowner turning the property back to the bank.
Learn more about foreclosure defense at these pages:
Altamonte Springs Deed in Lieu of Judgment Attorney
From offices in Altamonte Springs, Salfi & Sprysenski lawyers provide legal counsel and representation for clients in the Orlando metro area and communities throughout Central Florida. From anywhere in Central Florida, call us toll free at 866-583-0170 or contact us by e-mail to arrange a consultation with an experienced Orlando short sales attorney at our firm today.
