Anyone who owes more on their home than it is currently worth has probably wondered if a short sale would be a good idea. The answer is maybe. Remember Short Sale Rule #1: Do Not Believe ANYTHING That The Lender TELLS You! The lender’s representative has ONE thought in his mind; he wants to recover as much money as possible from YOU so that he doesn’t get into trouble with his boss. Nothing counts until it’s in writing. The entire process will also require more documentation and take longer than seems reasonable.
The lender does not have to accept a short sale and will not do so until someone, preferably a Real Estate Lawyer in Moline, IL proves that it is in their best interest. A short sale is not the same as foreclosure or bankruptcy. In a foreclosure, the lender normally will pursue the former owner for the difference between the amount owed and the amount the bank sold the home for, leaving the former owner with two choices: pay the difference or file for bankruptcy. A Chapter 13 bankruptcy gives the owner time to catch up on overdue payments, avoid foreclosure and resolve other debts. A short sale is an ‘arrangement’ between the owner and the lender to sell the property for less than the amount owed.
The details of the ‘arrangement’ state how the ‘short’, the difference between the $200,000 mortgage and the $150,00 short sale, is handled. Will the former owner have to repay the $50,000 or some portion of it? What will the terms be? What will be reported to the credit bureaus? Those details and many others can be effectively negotiated by a Real Estate Lawyer in Moline, IL.
