With the down turn in the real estate market over the last few years, many homeowners have been looking for a way out!  The process of getting out from under a home loan via a short sale is time consuming, emotional and draining.  Homeowners and realtors should not attempt to take on this task alone.  The hiring of an attorney to assist the realtor or title companies can make all the difference in the world. 

Remember, being served with a foreclosure complaint and summons does not mean a debtor has no rights or options.  Obtaining a short sale is one option by which a debtor may be able to get out from under a real property debt. 

HOWEVER, IT IS IMPERATIVE THAT YOU IMMEDIATELY INFORM AN ATTORNEY IN THE EVENT SERVICE OF A SUMMONS AND COMPLAINT FOR FORECLOSURE TAKES PLACE WHILE THE SHORT SALE PROCESS IS ONGOING.  TIME IS OF THE ESSENCE…

A "short sale" is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a homeowner cannot pay the full amount of the debt on their property. Analyzing the current real estate market conditions and the financial status of the homeowner, the lender decides that selling the property at a loss is better than pursuing foreclosure and taking back the property. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and obvious negative outcomes for the homeowner.

The short sale process does not begin with listing the property for sale instead it begins before that with the initial client consultation.  Once the client identifies short sale as the solution he/she wants to pursue the client should immediately begin preparing the short sale package for submission to the lender.  This package typically includes:

 ·         Two months recent mortgage statement (all mortgages encumbering the property)

 ·         Two months checking account statements

 ·         Two months savings account statements

 ·         Last two paycheck stubs

 ·         Financial Statement showing debt/income

 ·         Hardship Letter

 ·         Authorization signed by the borrower for the lender to release information to the realtor and attorney

In addition, the listing agreement, purchase contract and Preliminary HUD-1 showing no money to the Seller should be submitted to the bank.  We can assist in the collection and submission of this information.

Once the "short sale package" is submitted to the lender, we will continue to follow up and negotiate until a decision is rendered.  This is the most thankless part of the short sale process and involves a great deal of patience and persistency.

Finally, if a favorable decision is rendered by the lender, we assist with the closing of the transaction.

Whether you are a realtor or homeowner in need of assistance completing a short sale transaction, contact attorney Michael Michetti for a consultation or for more information.