The Short Sale as a Foreclosure Alternative
If you are facing a possible New York foreclosure, you may qualify for a short sale to avoid the negative consequences of a foreclosure. If you owe more on your home loan debt than the value of your home and do not have a second mortgage, you may qualify with your lender to sell your home for less than the mortgage amount due. Generally, in a short sale the lender will forgive the difference of what is owed. Even homeowners who are currently on time with their payments may be able to do a short sale if they have fallen on hard financial times and foresee a potential foreclosure in the future. Each case is different and will have to be negotiated on its own terms with the lender involved.
You can get the legal assistance you need in attempting this foreclosure alternative at the Law Firm of R. David Marquez, P.C. A Long Island foreclosure defense attorney at the firm can ensure that you understand all of the implications of a short sale, including possible tax consequences, and help you move forward with this option or explore other foreclosure defense options that may be more appropriate for your situation.
New York Short Sales
A short sale is handled like any other sale of residential real estate. This alternative to foreclosure helps you to avoid the severe degree of credit damage you will incur with a foreclosure, leaves you in control of selling your home (and not the bank), and allows you to stay in your home while you are waiting for a short sale approval and while selling it. Short sale approvals may take up to 3 months or longer, depending on the lender.
Negative aspects of the short sale are that you lose your home and may still face some credit repercussions, especially in cases where you have fallen behind on payments. Every lender reports a short sale differently. Some are reported as charge offs, others are reported as being paid in full for less than what was originally agreed. To avoid the possibility of a prepayment penalty or tax consequences, you need to have your loan situation thoroughly researched by an attorney at the firm.
Contact a Long Island foreclosure alternative attorney at the firm for legal assistance with a short sale today.
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