Avoiding Foreclosure Through a Short Sale — But Beware!
With the recent drop in the home real estate market, many people now have homes that have a fair market value that is less than the amount of their remaining home mortgage debt. Even if these people were able to sell their home, the proceeds from the sale of the home would not be enough to pay the remainder of their mortgage debt.
To make things worse, many people face the possibility of a forced sale through a home foreclosure. The worst-case scenario is when a family loses its home to a foreclosure, and the mortgage lender then comes after them for additional money because the forced sale did not net enough proceeds to pay the remainder of the mortgage debt.
For many families, a Chapter 13 bankruptcy may be the answer. A Chapter 13 bankruptcy can provide families with a three- or five-year debt repayment plan to pay back the amount they owe on missed mortgage payments. However, for people who do not want to keep their home, a short sale may be the answer.
What is a Short Sale?
A short sale is the sale of a home where the mortgage lender agrees to hold the homeowner harmless for any remaining mortgage deficiency. In other words, if you sell your home and you still owe $20,000 or $30,000 (or whatever amount) of debt, the mortgage company agrees that you owe it nothing. Many realtors and "foreclosure experts" will try to convince you to enter into a short sale transaction. However, be very careful. In many cases, you will be subject to a large tax liability at the end of the year for completing the short sale. We may be able to help you avoid the tax liability and still allow you to sell your home. Don't enter into a short sale transaction until you talk to us! Our attorney, Charles W. Price, has nearly 20 years of bankruptcy and debt relief experience. Through his experience and knowledge of many debt relief measures, he has helped thousands of people find solutions to debt challenges.
If you need to speak with a lawyer about bankruptcy, short sales or another debt relief service, contact the Price Law Firm in Altamonte Springs, Florida. We are conveniently located in the Orlando-Kissimmee metro area.
