Short Sale

Union County Short Sale Attorney

Protecting the rights of clients engaging in short sales

Some homeowners face an overwhelming financial burden because of the real estate market. Some unfortunate homeowners bought at the top of the market or swindled by financial schemes. Some people are caught drowning in debt because their mortgage is overwhelming while the value of their home has plummeted after the burst of the real estate bubble. Others face a serious life crisis that impacts their ability to pay their mortgage and would like to avoid the pitfalls. Regardless of the situation,  a short sale may be something families may have to explore. If you are facing the need to sell your home short, it is important to have an attorney that can effectively represent your interests and protect your rights through the process. Contact Joseph Gachko, Attorney at Law for a consultation to discuss your legal matter further.

What is a short sale?

A short sale is when a lender agrees to take a loan payoff that is less than the value of the mortgage. A short sale will impact a person’s credit, but not to the extent of bankruptcy or foreclosure. The short sale may be a good option if the overwhelming debt is just real estate. The lender must approve the payoff. The seller cannot receive any of the proceeds. Closing costs are paid by the bank.

Short sales are not guaranteed

Firstly, because the lender must approve the short sale, if there is evidence that shows you can afford your mortgage, you may be rejected from their short sale program. There are many other factors that can impact the success of a short sale. If there are multiple loans, one of the lenders may reject the payoff they are offered. Other things that can impact a short sale include mechanic’s liens, outstanding homeowners or association dues, tax liens, and liquid assets that can cover the shortage of the loan.

Deficiency of the loan

Many short sale agreements include a stipulation holding the seller liable for the shortage. This is called deficiency. Just because they agreed to a payoff that is less than the mortgage doesn’t mean you are completely off the hook. Financial situations change and if they believe that you can afford the difference sometime in the future, you could be held accountable for the remainder. Depending on the terms of your short sale, your lender could pursue full payment with some exceptions. It is imperative that you have an attorney on your side fighting for a waiver of deficiency.

Contact an effective short sale attorney in New Jersey

Some owners of real estate need to walk away from their homes because of overwhelming mortgages. They need an attorney that is focused on their future. If you believe that the short sale process is right for you, contact our firm. We will assess your situation and help you decide on the right course of action. When dealing with lenders and throughout the short sale process, we will work to ensure that your legal matter ends in the best way possible. If you need our quality legal services, contact Joseph Gachko, Attorney at Law.