Short sales an attractive option for some homeowners
Homeowners having trouble with their mortgages may wish to consider a short sale.
August 30, 2013 /24-7PressRelease/ -- Short sales an attractive option for some homeowners
Article provided by Law Office of Kevin J. Magorien
Visit us at http://www.kevinmagorien.com
Many homeowners currently find themselves in a very unique situation. They purchased homes within the past decade, right before the real-estate bubble burst. The housing market was in such poor shape that they would not have been able to sell their homes no matter how big of a loss they were willing to take, and this left many trapped in extremely lopsided mortgages.
Now that the market is improving, these homeowners might have more ways to get out of these mortgages. One potential option is a short sale. In a short sale, the lender agrees to allow the homeowner to sell the property for an amount less than the remaining mortgage balance. The lender also agrees to not hold the original mortgage holder responsible for this balance. The homeowner is then free from any obligations to the lender.
Those thinking of pursuing this option need to be aware that some lending institutions may not be receptive to these offers. An experienced attorney can negotiate with these organizations on the homeowner's behalf, which may persuade the companies to move forward. They may realize that if they do not agree to these options that they stand to lose a substantial amount of time and money pursuing a foreclosure against the homeowner.
If the lenders are unwilling to agree to a short sale, some homeowners may wish to consider the advantages offered by Chapter 13 bankruptcy. When a person files for bankruptcy, collection actions, including foreclosures, must stop while the bankruptcy is being resolved.
This often affords many homeowners time to become current with their mortgage payments, which may allow them to keep their homes. Under Chapter 13, the individual's dischargeable debts are consolidated, and paid back over a period of three to five years. Once this period has ended, the debts are considered repaid. This is an especially attractive option to homeowners who have substantial equity in their homes.
However, some homeowners may be better served by letting their homes go into the foreclosure process. It might not make financial sense to remain in the residence, and these individuals are only adding to their money problems by staying.
If you are having difficulties repaying your mortgage, speak to an experienced bankruptcy attorney about your options. It is important that you contact an attorney as soon as the problems begin, so that you can minimize the impact that this will have on your financial situation.
You may think that you will be able to handle these challenges on your own, but in many cases, the delay will only increase the risk that you may lose your home. An attorney can help you understand all of the potential ways that you can approach this problem, and help you find the solution that is best for you and your family.
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