Short Sale as an Option to Avoid Foreclosure
This is Veer Patel from the Law Offices of Patel Soltis & Cardenas. I want to talk to you a little bit more about loss mitigation and some
other options you may have, Now a short sale is something that you know you need to be wary of pursuing a short sale.
Why Choose a Short Sale?
Well you do a short sale as a last chance. So it really to save your credit and that’s really the only option you have
left. With a short sale there’s no equity left in the property. All right so let’s say your house is worth $500,000 and you owe $750,000.
You would do a short sale so you can sell the property. First, you need the bank’s permission for a short sale. Then you get a realtor or even an attorney to your short sale package. At closing the bank agrees to take less than what’s owed at closing. You’re gonna want to make sure your attorney whatever the short sale agreement protects you from any deficiency. So the $250,000 the bank let’s say they didn’t get paid. Since the house was sold for $500,000.
Without you know waiving the deficiency you’re on the hook for the $250,000
So, you want to be careful about that. Also, you have to keep in mind that there are tax consequences.
Now, I’m not the guy to talk about tax
consequences because I’m an attorney. But you need to speak to an accountant when you’re doing a transaction like this because you can get hit with a significant tax liability in a short sale. So that needs to be kept in mind as well.
Veer Patel, Esq. NJ Foreclosure Defense lawyer is both a New Jersey & New York State Licensed attorney He focuses on saving homes from Foreclosure. He has helped many people with defending foreclosure lawsuits in both New Jersey and New York.