Should I Short Sell My House-Real Estate? Reasons To Do So

Should I short sell my house? Should I short sell my real estate? If you are like many people in our community who own real property that has a value of less than the amount owed on the mortgages, then you may find yourself wondering what you should do. There are many things to consider when making a decision and there are many options available depending on your set of circumstances and your goals. You have probably heard conflicting stories from your family, friends and neighbors as to how to handle your situation. But whose advice do you take? Hopefully, in this article, I will provide you with information to help you with your decision.

The most commonly sought after solutions to the underwater home mortgage situation are to refinance, short sell the property, offer the lender a deed in lieu of foreclosure, defend the foreclosure, apply for a loan modification, file for bankruptcy protection, walk away (which I very rarely recommend) or strategically use a combination of any of them simultaneously. Wow! How does one know which resolution or combination of resolutions to pursue? Navigating through this legal minefield requires having the benefit of counsel from a professional or a group of professionals that know all of the ramifications of choosing any one or a combination of any of the above solutions.

In this article, I will explain the most common reason for a short sale, what a short sale is and the benefits of a short sale. The most common reason for short selling a property is because the property owner can no longer afford to make the payments on a property that is worth considerably less than what is owed on it. A short sale is a process whereby the homeowner-seller places their property for sale on the market knowing that the proceeds of the sale will not be enough to pay off the mortgage loan amount(s) in full. Thus, the seller must ask the lender(s) to accept less than what they are owed on the mortgage loans to allow the sale to occur. Furthermore, and this is very important, the seller should also ask the lender to waive their right to a deficiency in return for the seller cooperating with the lender to accomplish the short sale. Under Florida law, a lender has the right to pursue the borrower for the difference between the amount owed on the mortgage on the date of the sale (whether it be a foreclosure sale or short sale) and the fair market value of the property on the date of the sale. 

There are many benefits to a short sale. Perhaps the most important BENEFIT OF A SHORT SALE is that it provides a way for the homeowners to get out from under the heavy burden of making mortgage payments they cannot afford. In many unfortunate cases, the property owners spend their life savings trying to continue to make mortgage payments they cannot afford in hopes that they will not lose their home. Then years later they find themselves broke with a house that is worth less than they owe on it, they can no longer afford to make the payments and they are left with no way to stop foreclosure or avoid foreclosure. This leads me to another MAJOR BENEFIT OF A SHORT SALE – one recommended path back to happiness is to 1) short sell your property, 2) find a rental property that meets your needs at a lower monthly cost – this allows you to save money which frees up funds to pay your other bills on time thereby rebuilding your credit, 3) then re-enter the market as soon as two (2) years later to purchase a home you can afford. You can qualify for a mortgage in as little as two (2) years after a short sale. It takes at least three (3) years to qualify for a mortgage after a foreclosure. Another BENEFIT OF A SHORT SALE is that during short sale negotiations with your lender(s), you can request a waiver of deficiency. If you let your house go to foreclosure and it is ultimately sold at a foreclosure sale on the other hand, under Florida law, the lender has the right to pursue you for a deficiency for five (5) years after the foreclosure sale.

If you are seeking a real estate lawyer to help you through the legal process and to help guide you to find your way back to a less stressful, healthier and happier life again, please call our offices at 941-795-6565 to schedule an appointment with a lawyer. Wyckoff Law Firm, P.A. Your Sarasota short sale lawyer, Bradenton short sale lawyer, offering foreclosure defense, foreclosure help, short sale help, helping you stop foreclosure, avoid foreclosure and much more.