Tuesday 24 July 2012

What Every Homeowner Must Know About Short Sales

 

Presented by:

 

Aaron J. Scheinfield, Attorney at Law

 

 

            A short sale occurs when the seller is trying to sell his/her home for less than what he/she owes on the mortgage. There may be some potential obstacles to approval of a short sale. For instance, the buyer needs to demonstrate that he/she is experiencing financial hardship. Short sales may be difficult if the homeowner has not missed a mortgage payment. The process typically takes at least 4-6 months, maybe longer. Often times, the bank will not even speak to the homeowner unless he/she is at least 3 months delinquent in mortgage payments.

 

            Some advantages to a short sale include avoiding harm to your credit report and bypassing the foreclosure process. A short sale may be appropriate if there is no equity in property and financial hardship arises.

 

            Homeowners may have a dilemma if they try to negotiate a short sale when they have more than one mortgage. If so, it may become necessary to work out a settlement with the bank on the 2nd mortgage or the lien will not be released.

 

            There may be potential tax consequences resulting from a short sale as forgiven debt may be treated as taxable income to the homeowners.

 

            To fully understand your rights and responsibilities and put yourself in the best possible position to negotiate a short sale, contact attorney Aaron Scheinfield of Goldstein Bershad & Fried, P.C. for a consultation to discuss and understand your options.

 

            Without an experienced attorney on your side, you risk the possibility that the bank may still pursue you on the deficiency. Protect your financial future and call now!

 

Aaron Scheinfield

Goldstein, Bershad & Fried P.C.

4000 Town Center

Suite 1200

Southfield, MI 48075

(248) 355-5300 (phone)

(248) 355-4644 (fax)        

aaron@bk-lawyer.net






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