A recent article on cnn.com discusses the trend among distressed homebuyers to short sale their home.  A short sale is a process whereby a homeowner sells their home for less than they owe on their mortgage.  In order to do this, the lender must agree to the sale and usually will agree to forgive the remaining balance owed on the original loan. At De Novo Law Firm we pride ourselves in being knowledgeable about short sales and steering many of our clients away from foreclosures and into successful short sale.

While short sales have been on the rise for some time, many banks take months to process short sales and at times have seemed unwilling to allow them.  However, banks are now more prepared and have the proper staff to process short sales and stop foreclosures.  At De Novo Law Firm, we often advise clients on the short sale process, the legal ramifications of a short sale, and the potential pitfalls.  For more clients facing a foreclosure, it is far better to do a short sale than allow the property to foreclose.  For instance, a short sale will usually keep the homeowner in the property longer, looks better on credit, will allow the homeowner to buy another property sooner, and may also result in some money in the homeowner’s pocket.

In order to qualify for a short sale, a homeowner must submit a packet along with other information about the homeowner’s finances.  The process is very similar to a loan modification and can take approximately 4-6 weeks for an approval.  Because there is a significant amount of legal work involved, I recommend you speak with an attorney before starting the short sale process.  While a broker may try to answer all your legal questions, they are not qualified to answer the legal issues involved.   At De Novo Law Firm we charge nothing for a short sale consultation and can refer you to qualified brokers.  Call today for an appointment at (951) 801-5570.

 

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