Short Sale

As a former bank attorney, Ms. Valdes worked with some of the country’s largest banks and loan servicers and reviewed numerous short sale contracts. If you owe more money than your house is worth, a short sale may benefit both you and the bank. A short sale can also be a great way to avoid foreclosure and get the financial relief you are seeking. You can review your short sale options by contacting Valdes Law Firm, P.A. online or by calling (954) 764-7878 to schedule your free consultation today.

If you are threatened with foreclosure or are dealing with an underwater mortgage, a short sale may be a viable solution. In a short sale, you ask the bank to take less than the principal amount owed on your mortgage when the property is sold. Generally speaking, a short sale of an underwater property has less of an effect on your long term credit rating than a judgment of foreclosure does. Usually, the bank will accept the short sale to avoid the time and expense of a foreclosure. Banks understand that all areas of real estate and housing have been affected, especially in South Florida, and they may be willing to take less than the principal amount owed on your mortgage based upon fair market conditions. Although the process sounds relatively simple, there are a multitude of factors that can negatively affect the short sale process and a qualified attorney should review the circumstances of your situation and guide you through the process.

Keep in mind that after the short sale, the bank still has options to try to collect on the difference between the principal amount and the amount that the property was sold for (the “deficiency”) and there is no guarantee that the bank will release you for the balance due. As a condition of a short sale, the bank may require you to sign a note to repay the deficiency. The bank may also file an action to collect the amount of the deficiency. Most short sale negotiations that are conducted by realtors or other non-lawyers result in only a release of the property from the mortgage lien to allow its sale, thereby leaving you with a deficiency. Valdes Law Firm, P.A. will work with the bank to negotiate the amount of the deficiency or obtain a complete waiver of the deficiency so that once the short sale is completed, there is no risk that the bank will go after you to collect the deficiency. We believe that ensuring that you are not left liable for the shortfall between the mortgaged amount and the selling price is crucial to allow you and your family to move on with your lives.

There are risks and benefits to a short sale and each situation should be evaluated by an experienced attorney. Valdes Law Firm, P.A. can assist you in negotiating a short sale that protects your rights as well as advise you of other options that may be available to you. Contact us online or by calling (954) 764-7878 to schedule your free consultation today to find out how we can assist you with a short sale. Hablamos español.