Short Sale Negotiations for Florida Real Estate Mortgages
It can be frightening, stressful, and frustrating when you cannot pay your mortgage payments. Your mortgage company is calling every day, sending threatening letters, and telling you that it is about to file a foreclosure lawsuit. For some people, saving their home is the only option they want to consider. However, other homeowners want to sell the home and move on with their lives. Unfortunately, they cannot find a buyer willing to pay a price that covers closing costs and pays off the mortgage loan.
A Daytona short sale attorney can help you negotiate a short sale with the lender that allows you to sell your home for less than is owed on the mortgage. If you need assistance selling your home to avoid foreclosure, contact our office by calling (888) 316-2131 to discuss your case with a Daytona short sale lawyer.
What is a Florida Short Sale?
A short sale refers to a closing on your home for a purchase price that is less than the payoff on your existing mortgage. For example, you owe $200,000 to your mortgage lender, but the highest price you could negotiate with a buyer is $150,000. With permission from your mortgage lender, you can accept the purchase offer for $150,000 for a short sale.
The lender receives the full proceeds of the sale to satisfy the mortgage on the home. The transaction is referred to as a “short” sale because the lender is receiving a sum of money that is “short” of paying off the loan in full.
However, a short sale can be a lengthy process,and the negotiations with your mortgage lender for the short sale can be complicated. Our Daytona short sale attorney can help you as you go through the process of negotiating a short sale and selling your home for less than is owed to the first mortgage lender.
Why Would a Mortgage Company Agree to a Short Sale?
A mortgage company does not want your home. The lender wants your monthly mortgage payments or a lump sum payment in full. However, when you fall behind on your mortgage payments, the legal remedy for the mortgage company is to foreclose its mortgage. In many cases, the lender receives the property at the foreclosure sale. It must sell your home to recover the money you own on the loan.
However, a mortgage company is not in the business of managing and selling real estate. Therefore, it must retain the services of real estate professionals to manage and market the property for sale. Each day that the home is on the market, the mortgage company is losing money. In addition, very few foreclosed homes sell for the full payoff of the loan, so the company loses even more money when it is able to sell the house.
To avoid these costs, some lenders agree to a short sale. They receive most of their money without the cost, time, and hassle of going through a foreclosure. However, the lender uses many factors to determine if it will accept a short sale. Some of the factors the lender considers include:
• The amount owed on the loan;
• The current value of the home;
• The home's present condition;
• The current real estate market in your area;
• The cost of foreclosing and selling the home versus the amount lost through a short sale; and,
• The type of financial hardship that has brought you to this point.
The process of obtaining approval for a short sale can be complex. You may be required to provide substantial information and complete numerous forms before the mortgage provider will discuss a short sale.
Do I Need a Daytona Short Sale Attorney?
If you want to sell your home for less than is owed on the mortgage, hiring an experienced real estate attorney in Daytona can be beneficial for you. An attorney who routinely handles short sale applications understands the process, what is required by the lender, and how to negotiate the terms of the short sale to protect you as much as possible. Ideally, you want the lender to forgive any remaining debt owed on the account after the proceeds of the short sale are applied to the loan balance.
Your Daytona short sale attorney negotiates with the lender for approval of the short sale. Instead of dealing with the frustration of going back and forth with your lender, you can focus on securing a new place to live and putting the crisis that caused the financial hardship behind you.
Our real estate attorneys are also trained bankruptcy attorneys. Therefore, if the short sale falls through, we can discuss other options for you to get out of debt.