How a Short Sale Might Assist You
Hi, my name is Jordan Flake. I’m an attorney at Clear Counsel Law Group. We deal with a lot of real property issues, and there are times that we help people accomplish a short sale. Pretty much everyone I know has either seen a foreclosure, or a short sale, or a default at some point in the last several years, because so many people have gone through that, here in the Valley; but just so that you know exactly what your short sale options are:
The term short sale just means that you’re selling the property out there in the world, and the proceeds from the sale are not sufficient to cover the loan balance. Let’s use an example. Let’s say you owe $80,000 on a house, but the house is only worth $60,000. The owner of that house basically can get a buyer for $60,000, and go to the bank and say, “Hey, listen, I don’t have enough money to cover all $80,000 that I owe. However, I have this buyer, and rather than default on this and have it go into foreclosure for several years, why don’t you accept this $60,000 buyer, and we’ll basically allow that to wipe out the loan.”
It’s very important when you do a short sale that you cross all your T’s and you dot all your I’s, because you don’t want that $20,000 deficiency, in other words the amount of the mortgage that wasn’t covered by the sale, to chase you down, and hunt you down, and follow you around for a long time. That’s, depending on whether not you have a first and/or a second, there’s different rules that apply; but if you’re thinking about short selling your home, please reach out to Clear Counsel Law Group. I’m more than happy to do a no-charge consultation, just to discuss your short sale options, give me a call. Thank you.