Short Sale: Your Alternative To Foreclosure
Are you struggling to make your mortgage payments? Is the loan balance on your property greater than the value of your home? If you feel like you are “underwater” on payments, then you may be worried about the threat of foreclosure, which can lead to the loss of your home and considerable damage to your credit score. If this is your situation, then a short sale may be the answer for you.
What Is A Short Sale?
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.
It’s very important to remember that a short sale agreement does not necessarily release the borrower from their obligation to pay the remaining balance of the loan, which is known as the deficiency.
How Our Firm Can Help
The process of executing a successful short sale is a long, tedious and complicated one. Because of our years of experience handling a variety of real estate matters, including short sales and foreclosures, we can provide you the expertise required to execute your short sale, which consists of the following steps:
- Calling the lender
- Submitting a letter of authorization
- Preparing the preliminary net sheet
- Submitting a hardship letter
- Providing proof of income and assets
- Performing a comparative market analysis
- Ordering a broker’s price opinion (BPO)
- Submitting a purchase agreement and listing agreement
- Waiting for lender approval
Contact Barli & Associates LLC Today
At Barli & Associates LLC, our attorneys can give you the representation you need to effectively negotiate with your lender for a short sale. We know New Jersey law and the legal process well. We will act as your guide every step of the way, making sure the right legal documents are signed and submitted correctly.
To obtain our services, contact our Clifton or Tenafly office to schedule a free initial consultation. Call 973-638-1101 or send us an email.