Short Sales: Protect Your Rights
A short sale is a real estate transaction where the proceeds from a sale fall short of the loan amount secured by the property. In a short sale, a bank or lender will agree to discount the loan balance through negotiations between the lender and the mortgagor. Richard Croak has over 30 years of experience in negotiating and representing mortgagees' rights in short sales. If you have sold your home for less than the mortgage or are seeking to pursue a sale at less than the value of the mortgage, it is important to protect your rights.
Protect your security and your rights. Contact attorney Richard Croak today by calling 518-213-3359 or contact the office by e-mail.
Many people do not know how to pursue a short sale, but are told by their broker to do it. Usually, to complete a short sale, you would contact your bank and the bank would send out the papers, but this is usually unproductive and can be unsuccessful.
Typically, a short sale is an alternative to home foreclosure. The bank's decision to agree to a short sale usually depends on the amount of the mortgage and the home price, and whether the short sale is the most economic way for a bank to recover on a loan. A short sale may be cheaper than a foreclosure.
Short sale benefits to homeowners include:
- Avoidance of bankruptcy or foreclosure on credit history
- Save time and money rather than pursing a foreclosure
- Negotiate a lower payment if you cannot secure a deed in lieu of foreclosure
- You can extinguish any remaining balance through a purchase agreement or acceptance offer
How Do I Proceed With a Short Sale?
A more efficient way to complete a short sale is to go to a broker and say you want the best price you can get. You can figure out how much a commission will cost, what closing costs entail and how much the transaction cost with a signed offer will be. When you have the signed offer in hand, you can contact the bank and offer the total price. However, it is important to note that with a short sale, you need the offer in hand. You cannot simply propose an offer to the bank, but you need an actual sale amount.
Does the Lender Have the Right to Refuse My Offer?
Yes. If you have sold your home for less than the amount of your secured loan without the approval of your lender, you may be liable for the difference. It is important to know your rights and options before pursuing a short sale. In the current economic climate, more banks are willing to accept short sales, but it is important to understand the legal nuances of this procedure before making an offer.
For more information about bankruptcy options and your rights, please contact lawyer Richard Croak at his Albany, New York, office for an initial consultation by calling 518-213-3359.
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