A short sale situation is created when a property is worth less in the current market than the seller borrowed against the home. In this case, the sale of the home at market value will not pay off the debt securing the home. The lender will need to approve the sale, as they will take a loss on their loan.
The seller of the home may or may not be in distress, and a foreclosure action may or may not be involved.
The misconceptions surrounding short sales and the short sale process have caused many heartaches for buyers of real estate. While the short sale has been touted as a vehicle for investment success, the realities of the process can prove daunting. Buyers who expect to buy a home for 50 cents on the dollar are often surprised to find out that the bank or lender is sticking close to market value.
Short sale negotiation may be required either on the buyer or seller side. From the buyer’s perspective, it is important to understand current market values, and navigate the nuances of bank lawyer- generated contracts and addendums that are often not standard. Legal review of documents from the buyer perspective becomes crucial.
From the seller’s perspective, legal representation is often necessary to navigate through the bank’s paperwork and red tape, and deal with the banks attorneys. Sellers will want to understand all documents, including the implications of the short sale regarding whether or not the debt is forgiven, and the effects on credit score.
Short sales are exceptionally complicated legal processes. As a buyer or seller, it is imperative that you have representation to protect you and your investment against the bank’s attorneys. Not all Sarasota real estate lawyers are experienced in short sale negotiation. Sarasota short sale attorney Scott Van Ness has the experience to guide you through this process with the desired result.
I have over 19 years experience as a real estate investor, over 20 years experience as an attorney, and all of those years include real life experiences. In addition, I am a born-again Christian who is willing to give you Biblical counsel as well if that is what you want. God calls us all to be a light in this world, and often that means acting differently than everyone else. I would love to talk with you about that. Call me today at 941-922-7900.