Jump to Navigation
When you've done all you can you may be able to get A Fresh Start

Can a short sale stop home foreclosure?

Given the choice between a foreclosure and a short sale, which would you choose? Most people in Florida zero in one the word "sale" and make a quick decision. Although it certainly seems like a smarter option to quickly sell before home foreclosure hits, it can actually do a great deal of harm.

So what is a short sale? A prospective buyer offers to purchase the house for less than what you currently owe on the mortgage. After that, you negotiate with your bank to avoid foreclosure, and get the lender to agree to accept the offered amount. Then you sell your home and avoid foreclosure. You could also lose out -- big time.

Although avoiding foreclosure is an understandable goal, short sales benefit everyone else but you. The real estate agent gets a cut of the sale, the new owner gets a home for a low price and the bank reduces its risk of holding onto a property that does not sell. And you? You are out of a house and your bank might make you still pay back the difference between your house's original mortgage and the short sale's purchase price. Even if the lender forgives that portion of the loan, there are usually tax consequences that you will have to take on.

No one wants to deal with a possible home foreclosure. The very idea is heart-wrenching considering how hard most Florida homeowners worked to reach their goals. There are several smart options for dealing with foreclosures -- including loan modifications -- but a short sale is usually not one of them.

No Comments

Leave a comment
Comment Information
Do You Have A Case?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

A Member of the FindLaw Network
Paul Urich
Orlando Office

Law Office of Paul L. Urich, P.A.
1510 East Colonial Drive
Suite 204
Orlando, FL 32803
Phone: 407-982-3763
Fax: 407-896-3041

Get directions