If your home is in foreclosure, you may want to consider exploring a short sale as part of your foreclosure defense. A short sale is a sale of the home for less money than what is currently owed; while it is not a foreclosure defense in the sense that it does not prevent you from losing your home, it can be a useful tool for avoiding the added headache of having the bank come after you for the difference.
Deficiency judgments can haunt you for years. When the bank sells your home through the foreclosure process, there is no guarantee that the price it brings will be enough to cover what you already owe, plus the attorney’s fees and other costs of the foreclosure process. This means that you could end up losing your home and still be on the hook for thousands of dollars. The bank that holds your mortgage could pursue you for the difference for years to come, meaning that you have to deal with the fallout long after the foreclosure process has finished.
Consider a short sale. When you make a short sale, you find a buyer who is willing to purchase the home for an amount. Then, if the bank agrees to accept that amount, you walk away free and clear.
A short sale can benefit all three parties: it saves you from dealing with a deficiency judgment, it saves the bank the time and hassle of finishing the foreclosure, and it saves the buyer some money.
If you would like more information about a short sale, or some other foreclosure defenses, contact us today.
