what is the benefit of a short sale attorney

Although a short sale (selling your home for an amount lower than the outstanding mortgage) is not exactly a “win-win” for you and your lender, but it has certain benefits that your Miami real estate attorney can discuss with you. Most importantly, you will benefit because the foreclosure will not get recorded in your credit report.

Full Answer

Should I hire a lawyer to negotiate a short sale?

As a part of our short sale services, our attorneys will attempt to settle your mortgage debt in full, or arrange payments with your second lien holder. If this is done at the time of the short sale, there is no additional charge for this service.

What is a short sale and how does it work?

What Are the Benefits of Short Sales? Eliminate your mortgage loan. You won't have foreclosure on your credit record. Your credit record probably won't suffer as much as if you went through bankruptcy or foreclosure. Receive relocation assistance in some cases — up to $3,000

What kind of real estate agents handle short sales?

May 24, 2021 · Homeowners deciding between a short sale and foreclosure should look into the benefits of a short sale. Having an experienced attorney/realtor through the process also makes a difference. For homeowners considering a short sale, there are multiple benefits.

Can a bank ask for a seller contribution for a short sale?

May 27, 2015 · A short sale could provide you with relief from real estate debt. It can also benefit the creditor by bypassing the costs and time associated with foreclosure. The transfer of possession is often times smoother with a short sale. As the debtor, you may have been searching for a way to leave a binding real estate agreement.

Who benefits from a short sale?

For the seller, a short sale presents less damage to his credit report than a foreclosure, and allows him to recover and buy a new house more quickly. This sense of cooperation between the seller and buyer may facilitate the exchange and get the new owner into the house more quickly.

Can you negotiate short sale price?

Can You Negotiate A Short Sale? It is entirely possible to negotiate a short sale, but doing so can be a time-consuming process. Instead of negotiating with the seller alone, as is the case with most traditional sales, short sale negotiations must be approved by the lender, too.

What is the downside of a short sale on a home?

Disadvantages of a Short Sale A short sale comes with quite a few catches. There are more parties involved than a typical sale making the process complicated and often lengthy. In a traditional home sale, price negotiations happen between the buyer and seller (or their representatives), not the seller's bank.Mar 16, 2021

How does a seller benefit from using a short sale?

A short sale is when a home owner sells his or her property for less than the amount owed on their mortgage. In other words, the seller is "short" the cash needed to fully repay the mortgage lender. Typically, the bank or lender agrees to a short sale in order to recoup a portion of the mortgage loan owed to them.Jul 3, 2018

How long does it take to settle a short sale?

A short sale can take up to six months to be approved because many factors can slow the process down. You might be able to reduce the time it takes to be approved by asking your agent for some information before making an offer.

Will the bank take less on a short sale?

If the list price is too low, the bank will reject the short sale. Moreover, a low list price could be a strategy used by the listing agent and seller to entice multiple offers on the short sale. In short, the list price of a short sale could mean nothing at all.

What should I offer on a short sale?

How to Make a Short Sale OfferOffer a Strong Earnest Money Deposit.Check the Comparable Sales.Don't Ask for Special Reports or Repairs.Give the Bank Some Time.Assure the Seller You'll Wait.Offer to Pay the Seller's Fees.Shorten Your Inspection Period.Provide a Strong Preapproval Letter.

Is short sale better than foreclosure?

Short sales are less damaging to a credit report than a foreclosure. A foreclosure is when a home is seized and put up for sale by the investor or bank. Every mortgage contract has a lien on the property that allows the bank to control the property if the homeowner stops making mortgage payments.Feb 28, 2022

Is short sale worth buying?

The biggest benefit to buying a short sale home is the chance of finding a great deal. And unlike with a foreclosure, a short sale home is likely to be in good condition. Often, the current owner will be still in residence and keeping up basic maintenance. A foreclosure, by contrast, might be in disrepair.Jan 14, 2021

Why are short sales so difficult?

With a short sale, the seller is asking the bank to take less than the amount owed. Even if you've made an offer and the seller has accepted it, it's not a done deal. The seller's bank must approve the sale, and this is where the big delays can happen. Banks are losing money in a short sale and aren't too keen on it.Jan 11, 2016

What are the consequences of a short sale?

In a short sale, the home sells for less than the seller owes, so the lender won't get all their money back. As a result, the original lender must agree to the sale. The seller must prove they have no other option.Jan 26, 2022

Do short sales hurt your credit?

Yes. There is no way to avoid the damage a short sale does to your credit score. A short sale can knock as much as 160 points off your credit score, but the level of damage heavily depends on your credit standing before the short sale and how much your lender gets in the sale, among other things.Jul 8, 2021

How do you make money on a short sale?

Short sellers are wagering that the stock they are short selling will drop in price. If the stock does drop after selling, the short seller buys it back at a lower price and returns it to the lender. The difference between the sell price and the buy price is the short seller's profit.

How long can a short sale last?

A conservative estimate should allow for six months, start-to-finish, on a short sale. While it's technically possible to complete in as little as two months, it's unlikely. As we've reiterated, your patience will be one of the most crucial aspects of your short sale timeline. Well, that and a great agent, of course!Aug 16, 2021

What happens if short seller Cannot cover?

As a short you must pay any dividends or other distributions, and match any tender or exchange offers, made by the stock, so you can lose even if you never cover. Moreover, you can be forced to cover if the lender wants the stock back to vote or for any other reason—or no reason.

How long can you hold a short position?

There is no mandated limit to how long a short position may be held. Short selling involves having a broker who is willing to loan stock with the understanding that they are going to be sold on the open market and replaced at a later date.

How long can you get a Fannie Mae loan after foreclosure?

However, if you have a short sale, you could be approved for a Fannie Mae loan around two years after the sale is finalized.

Is it better to short sell or foreclosure?

A short sale is a much better option when focusing on your financial future.

What is asset protection?

Asset Protection. Banks scrutinize a seller's financial statement. Banks examine a seller's bank accounts, tax returns and have been known to pull a seller's credit report. If the bank is taking a loss on the sale, obviously the bank would like to recoup part of that loss.

Who is Elizabeth Weintraub?

Elizabeth Weintraub is a homebuying, home loans, and mortgages expert. With more than 40 years of experience in real estate, including areas such as title and escrow, Elizabeth was nominated as a founding member of the California Association of REALTORS' Real Estate Certificate Institute (RECI) and has received more than 600 hours ...

Can a bank release a seller from personal liability?

Although a bank may forgive the balance between the mortgage balance and the final sales price, the bank might not release the seller from personal liability. This means it is possible that the bank might be able to legally garnish a seller's future wages, attach bank accounts or otherwise pursue the seller for that money. It's called a deficiency judgment. 2 The short sale approval letter may or may not contain verbiage that spells out the bank's specific rights. Absence of such language is no guarantee the bank has released a seller.