Could a Short Sale be the Best Option for You? Let’s Explore Your Options!
After the 2008 housing market crash and the recession that followed, “short sales” became far more common in Connecticut and other states. In a short sale, the lender agrees to accept an amount lower than what is owed on the mortgage instead of completing a foreclosure.
This arrangement helps owners avoid bankruptcy and achieve debt forgiveness; it offers buyers the opportunity to obtain properties on excellent terms; and it allows the lender to “wrap up” the mortgage and end obligations it has toward the property. Despite the potential positives, though, many buyers and sellers fail to appreciate the legal and financial complexities and challenges.
How Short Sales Work
In many ways, the process is like a standard home sale. However, the lender approval piece can last longer, and you typically need to line up a buyer in advance. You also need to demonstrate that financial problems are preventing you from paying down your mortgage or making up the difference between the property’s value and how much you owe on it.
What It Really Takes to Get to Closing
First of all, appreciate that the short sale process is surprisingly labor intensive and intricate. Getting approval can be arduous and frustrating. Homeowners who attempt to navigate this path by themselves often wind up playing a seemingly never-ending game of “hurry up and wait” with arbitrary rules and procedures set by the bank and sometimes repeated requests for documents that have already been submitted. For instance, you might wait for four weeks for a response and suddenly get a notice that gives you just 24 hours to respond with documents.
Rather than scramble to react to these events, strongly consider working with an experienced attorney who can guide you. We pride ourselves on our ability to get these sales done and closed. We don’t charge an attorney’s fee unless we are able to close the sale; and even when we do close it, our fee is paid out of the closing proceeds. In other words, the money for the legal fees doesn’t come out of the homeowner’s pocket.
Consider working with a qualified Connecticut real estate lawyer to:
- Start process and communicate with the bank on your behalf.
- Negotiate short sale terms and gather the necessary information to back up your position and demonstrate the need for terms that are fair, favorable, and consistent with your needs.
- Clarify and explain the complex federal, state, and local rules that can affect short sale transactions, so that you can enter the deal confident that you know what you’re agreeing to do and what you will receive in return.
Every short sale is different. That’s why we take an individualized approach to the process, working with clients to ensure success on their terms.
At Klein & Babbitt, our lawyers have lots of experience helping property owners navigate successful short sales. Please contact us today for a confidential strategic case evaluation.
