Massachusetts Short Sale Attorneys
When you sign a contract, you are generally bound by it. And this is true in a home mortgage also. The recent recession has devastated the real estate market, with many and widespread problems, and a variety of attempts at resolution.
As of this writing, upwards of 25 percent of homes in the nation are "under water." That is, their fair market value is less than what is owed on the property. And what is owed is less than what the owner paid. Prices have dropped that much.
If you are having trouble making mortgage payments, you may be in danger of the lender foreclosing on your mortgage and taking your home. With the unemployment rate at double digits in some areas, many are unable to keep up with their mortgage payments.
Banks don't like to foreclose on borrowers. They hoped to have a steady stream of payments for 15 to 30 years. Now they will simply get a home. The foreclosure process is expensive and time-consuming, and it must proceed according to law. Some feel the negative effect of publicity of taking people's homes. Finally, some former owners take revenge by removing copper piping or other valuables, and damaging the home.
Massachusetts Short Sale Lawyers
A short sale is a sale by the owner to a third party for less than the owner owes. The bank takes the proceeds and releases the original owner of the deficiency. It may be the "least bad" option for both parties.
The proceeds the lender receives are usually more than it would ultimately have received with a foreclosure. The owner is released of debt, does not have the humiliation of being evicted or the damaged credit rating of a foreclosure.
The key is negotiating to ensure the release of debt for the deficiency, and awareness of all potential liability. Our firm can help.
The options may seem complicated but there is usually a resolution better than you feared. A deed in lieu of foreclosure simply gives the home to the lender, without a sale or a foreclosure. We may be able to negotiate this arrangement for you.
Our Newburyport law firm handles a broad spectrum of legal matters involving real estate, business law, and estate planning. Contact a Salisbury Massachusetts real estate lawyer today.