A short sale of your home may be an alternative to consider if you face foreclosure in New York City.
This type of real estate transaction involves selling your property to try and rid yourself of the lien for unpaid mortgage debts.
How does a short sale work?
When your lender approves a short sale arrangement, they agree to sell your house for less than the remaining financial obligation on your loan. With this type of contract, the bank may then release the lien on your estate. Selling your property in this way can benefit all parties involved in the sale.
What are the advantages of a short sale?
A short sale helps eliminate your mortgage debt and reduces the damage to your credit. It minimizes risks for the lender as houses typically sell for less than market value at a foreclosure auction. First-time buyers and real estate investors benefit by getting price reductions on their purchases.
Do you need a lawyer for a short sale?
This type of sale is a complicated real estate transaction. Many issues may occur that can have financially harmful consequences. Experienced attorneys can help you understand and navigate the process. They know how to negotiate the agreement with your lender and give you legal advice throughout the transaction.
What issues can legal representation address?
A lawyer can aid with several aspects of your short sale, including:
- Interpretation of your agreement
- Review and advice regarding the contract terms
- Documentation and filing procedures
- Liability for a deficiency judgment
- Negotiations with junior lien-holders
Pursuing a short sale for your property can help you discharge your mortgage debt. It is essential to understand the complexities of this kind of transaction to ensure a successful sale.