Five years ago, when home prices first began their steep decline from their once lofty heights, mortgage lenders were more likely to repossess a home than to try and strike a deal with the owner. Times have changed and, according to the Los Angeles Times, lenders are now more willing to work with financially stressed homeowners. Short sales, for instance, in which a homeowner sells their property for less than they owe on the mortgage with a bank’s approval, have become more common.
In fact, according to the Sun Sentinel, non-foreclosure short sales in Florida’s hard-hit Broward County increased by 60 percent in the time period between July and September of 2012 over the same span in the previous year. With their hands already full with other repossessed homes and the often lengthy foreclosure proceedings that go with these properties, more financial institutions have become willing to work with a homeowner to get a short sale accomplished.
Why should a homeowner choose a complicated short sale over simply walking away from an underwater home? Because according to the Palm Beach Post, lenders can go after a borrower for their money for up to 20 years after a foreclosure or a short sale has finalized. However, according to the Post article, banks are more willing to write off the deficiency from a short sale.
Short sales can be very complicated, though, so it is typically best for a financially stressed homeowner to hire a real estate lawyer to represent his interests during these types of transactions. Owners of distressed properties should especially seek a lawyer who has local experience. For instance, a Boca Raton property owner should look for a lawyer Boca Raton specialist to help him get his short sale approved by the lender.
The law offices of Kristin Coomber, P.A. has years of experience in handling short sales. The firm’s team is led by Kristin Coomber, who is a lawyer Boca Raton specialist with many years of experience in all areas of real estate law. If you are a buyer/purchaser or seller in need of legal assistance regarding short sale transactions, feel free to contact us today.
*Image, “Todd Team Tags It Sold!” appears courtesy of Flickr user, Marcia Todd under the Attribution 2.0 Generic license.