Avoid Home Foreclosure
Most people try really hard to avoid a home foreclosure. Short sales and loan modifications are the two major efforts to avoiding foreclosure.
Short sales have become much more common since the real estate market collapsed. These sales generally benefit the lender and not you, the borrower. The purpose of a short sale is to sell your real estate, usually your primary residence, and have the mortgage company accept less than what they are owed. For example, if you owe $350,000 and the real estate is worth $250,000, you are asking the lender to accept whatever a buyer is willing to pay, often less than what the home is worth. Whether the lender will accept less is one issue — whether they will do so without pursuing you for any deficiency is another. That is all part of the negotiation process. While our office does not handle short sales, we will often counsel clients to insure that they are acting in their best legal interests.
Short sales have become much more common since the real estate market collapsed. The purpose of a short sale is to sell your home and get the mortgage company to accept the sale proceeds minus the deficiency of any remaining debt. For example, if you sell a home for $100,000 but have a remaining mortgage debt of $150,000, your attorney negotiates a short sale in which the bank accepts $100,000 and excuses the remaining debt of $50,000.
If your attorney can negotiate a short sale, two primary goals can be achieved. First, you avoid a home foreclosure. Second, you have part of your overall debt excused.
While short sales can be tremendously helpful for some individuals, they are not the correct solution for everyone. Moreover, your mortgage company has the right to refuse a short sale. In some cases, a Chapter 13 bankruptcy or a loan modification may be preferable to a short sale, as they may allow you to keep your home.
At the Law Offices of David R. Gunnin, we provide a wide range of debt relief services for individuals throughout Orange County, Los Angeles County, Riverside County and San Bernardino County. If you are in debt and you are at risk of a home foreclosure, we encourage you to contact our law office to learn more about short sales, Chapter 13 bankruptcy, loan modifications and other debt relief measures that may be available to you.
Contact a Lawyer
To schedule a free consultation with attorney David R. Gunnin, call 800-300-4648, or contact us by e-mail.