Handling a Short Sale Negotiation

What is a short sale?

A short sale is the term used when a lender agrees to sell a home for less than the amount that is owed on the homeowner's mortgage. A short sale is an extremely complicated process that requires deft legal experience and knowhow. As a homeowner, a short sale that is done properly will discharge you from being responsible for the rest of the debt that the short sale did not cover. However, if you do not have legal representation, you may find yourself still having to pay off the remainder of the mortgage. Furthermore, a short sale may require that a certified realtor handle the sale of the home. You may be involved in this situation, either as a homeowner, or a realtor, and it is essential that you retain the services of an experience lawyer to help you negotiate the short sale and make sure that all loose ends are tied up in the end.

Short Sale Process

The short sale process includes several steps. Before you can apply, you need to prove to your lender that the house is worth less than the amount you owe. You will likely have to have the house appraised, and then prove to the lender that someone will want to buy the house for close to market value, which is less than what you owe. For this reason, you will need a Realtor to put the house "on the market," that is, advertise that the house is for sale, and then see what offers are given. When you have an offer, you will then apply for the short sale with your lender. This is where you will definitely need an attorney.

The attorney can work closely with your lender to ensure that all the proper paperwork is being filed, and that the process is on track. If you are a Realtor, you are likely aware that DRE, MLS boards and National Brokerages advises all Realtors to include an attorney in their short sale negotiations, because of the vast legal implications of a short sale. As you can see, this is a complicated process that will only benefit from the involvement of an experienced attorney.

Resolving Financial Issues with Our Firm

At Price Law Group, the firm have over 20 years of experience in all financial legalities. This includes bankruptcy, loan modifications, debt settlements, and tax resolutions. The firm has handled thousands of short sales successfully . The legal team works hard to ensure that each client, whether realtors or homeowners, are protected from risk. As a realtor, it is not your job to negotiate with lenders. That is the job of an attorney. The firm has the experience and knowledge in this area that is required for a short sale to be completed correctly, and to the satisfaction of all involved parties.