Persuading A Bank To Approve Your Short Sale
If your home mortgage is underwater and you owe more to the bank than your house is worth, a short sale may be the most effective solution for you to free yourself from a bad financial situation. You should not have to continue paying an exorbitant amount every month for a home loan that is larger than the value of the property.
The most crucial step in carrying out a short sale is negotiating with the bank to persuade them to allow you to move forward with the process. This is due to the fact that if you sell the house at the fair market value and this amount is less than the balance of the loan, the bank will be able to hold you liable to pay the remainder by obtaining a deficiency judgment against you.
Goals Of Short Sale Negotiation
A qualified foreclosure defense attorney from Whiteman Law, in Chicago, can represent you in negotiations with the bank and to work tirelessly to secure their approval to move forward with a short sale. The negotiation process requires careful preparation of the case, with extensive documentation of your financial situation, the values of comparable properties in the local area and real estate market trends, and a solid command of real estate law and the principles of short sales.
Our goal is to get the bank’s approval to sell the home at a price that is low enough to attract a buyer, while also satisfying their expectations in the situation. It is also important to get a waiver of deficiency in which the bank agrees not to hold you liable to pay for any remaining balance on the home loan.
Short Sales Benefit The Lender
Banks are usually initially opposed to approving a request for a short sale, despite the fact that it is nearly always in their best interests to do so in order to avoid a foreclosure. After all, the lender stands to lose money either way. If they refuse your request and instead foreclose on the property, they will in all likelihood have tens of thousands of dollars in lost revenues while the loan is in default and while they wait for a new buyer, in addition to paying for the legal costs of foreclosure. In a short sale, the property will still most likely sell for approximately the same price as it would after a foreclosure, but the lender gets to avoid paying for the additional costs of foreclosing on the borrower.