If you can’t afford to keep your home and you are in a situation where your house is what is called underwater, you can make arrangements with your lender to accept a price lower than what is actually still owed on your house. Many times your house is in foreclosure and if you do nothing the house will end up being foreclosed and you’ll end up having what’s called a deficiency amount. A deficiency amount is what is owed in addition to what the house is actually worth based on the balance of your outstanding loan with the lender. In this situation, it is smart to make arrangements with the lender to do a short sale so that you can end up having the deficiency forgiven and have the house off your name. Many times if you just end up not doing anything you will end up owning the house and having the responsibility of the house until the foreclosure takes place.
One of the advantages of short selling your home is that you don’t have to put it into foreclosure and it will come off the market more quickly. It is a difficult financial decision to make because your credit will suffer but it may be the best decision for your particular situation. However, your credit can be easily repaired in the event that you are able to make your other payments on time on any other debt that you might have.
If you are considering short selling your property, it is valuable to seek legal counsel from your attorney in order to determine what the next steps might be.
Juan C. Velasco, Esq. is a trusted attorney who has been serving the New Jersey area for over 25 years. If you are in need of experienced legal counsel, please contact Velasco Law Office and we will be happy to assist you.