What are Short Sales?
For some homeowners, a short sale is an alternative to foreclosure. During a short sale, the lender agrees to accept less money on a home than the total amount still owed. While a short sale affects credit scores, the impact is less significant than foreclosing on your home.
Contrary to its name, the short sale process can be quite lengthy. But, you can avoid going into foreclosure.
A lender may agree to a short sale when:
You are experiencing hardship. This could be caused by a number of situations from job loss and medical issues to relocating for work or undergoing a divorce. To qualify for a short sale, you are required to submit a Letter of Hardship explaining your financial difficulties.
You owe more on your home than it is worth. This is likely caused by a decrease in the market and property values. A market analysis of comparable properties will support your claim.
Real estate agents are not allowed to offer legal advice or explain any of the legal ramifications of short sales. Homeowners considering a short sale should work with a lawyer. Attorneys at the Law Offices of Jill Pogach Michaels will help you navigate the complex short sale process and protect you from liability issues, including deficiency judgments.