A short sale in Florida is the sale of property or real estate in which the proceeds from selling do not cover the balance of debts owed to the lender. Often short sales are an excellent strategy to avoid Florida foreclosure, as long as it is done properly by a qualified attorney. A Florida short sale can be an alternative to falling into default on a mortgage. The Florida Foreclosure Law Group has many trained experts with hands on experience in helping with short sales.
Determine if a Short Sale is Right for You
Florida short sale agreements do not necessarily release borrowers from their obligations to repay on their loans unless specified and agreed upon by all parties involved. You must consult a lawyer to make sure your rights are protected.
A short sale in Florida is an alternative to a foreclosure, not a solution. In most cases the credit of the borrower is often negatively affected as a result of a short sale. Additionally, a majority of lenders require the borrower to prove an economic or financial hardship resulting in the inability to pay on the balance of the debt.
The best way to alleviate the stress of making the decision is to find out the facts that surround your individual case. The lawyers at the Florida Foreclosure Law Group can assist with such decisions.
Why would Short Sale be a Good Strategy?
A Florida short sale is a benefit to borrowers because they stop mortgage foreclosure and prevent the lender from suing for deficiency. Deficiency is the difference between what the lender would have received under the contract and the final property value. The average difference is over $125,000
When you enter into a voluntary agreement with the lender, you ultimately stop the foreclosure process in Florida and your credit report does not contain a foreclosure listing. This will help out in the future for any property purchases that will require you to obtain a loan.
Through our negotiation process, the lender agrees to forgo suing you for any amount of money which they write off associated with the Florida short sale transaction. A short sale transaction will also provide a peace of mind by giving the exact date when the short sale will close and there is no risk of being evicted before the timeline is up.
Short Sale and Personal Credit
A Florida short sale that results in a reduction of the amount a borrower owes toward the principle balance can act as a type of settlement or renegotiation of a borrower’s debt. However, if the creditor reports the debt reduction to a credit reporting agency, it can negatively affect a person’s personal credit report.
In 2012, national and Florida short sale laws are in an ongoing and rapid state of change. Borrowers interested in a Florida short sale should first consult with an attorney from the Florida Foreclosure law group for up-to date and specific advice as it applies to the situation.
Want more information on Florida Short Sales? Call 877-783-5986