Is a Short Sale an Option?
If your home has depreciated in value, it may be worth less than the amount you owe. Obviously, this presents problems when trying to sell your home.
When an owner sells a home for less than a mortgage, he or she still owes the bank the remaining debt (the “deficiency”). In a short sale process, one negotiates with the bank and comes to a compromise that allows for the sale of the home. Short sales can be extremely difficult as your mortgage holder will obtain its own appraisal and often reject an offer as too low. We do not normally recommend short sales as they are usually financially undesirable when compared with other options. Even if a mortgage holder accepts a short sale, you would owe taxes on any forgiven mortgage debt. That could amount to tens of thousands of dollars. It is important to realize that unsecured deficiency can be discharged in a Chapter 7 bankruptcy and may be overcome with a Chapter 13 bankruptcy payment plan.
Reaching an ideal outcome in short sales almost always requires the skill and expertise of an experienced attorney. Our team is here for you.
For More Information About Short Sales and Bankruptcy
We will work directly with you to undertake the short sale process, arriving at an outcome that works best for your unique circumstances. If you have lost significant value in a house, we understand the stress. By thoroughly analyzing your issues, we will help you reach an ideal outcome.
Regardless of your circumstances or concerns, we encourage you to get in touch and schedule a free, no-risk consultation. We are ready to help you get a clean slate on financial life.
To schedule a free initial consultation with our Monmouth County short sale bankruptcy lawyer, call Oliver & Legg local: 732-988-1500 or fill out our contact form.