Realtors are a great resource and they are ideal to process your short sale if you are looking to sell your home and avoid foreclosure. However, to ensure that everything is done correctly and that you won’t be left owing any unexpected fees to the mortgage lender, it’s best to have a specialized foreclosure defense attorney working simultaneously with you and the realtor.
While realtors are experts in selling homes, they may not be qualified to work out more intricate contracts with banks. If the bank has already filed the foreclosure suit, then the property itself is already involved in a legal matter, thus it requires special attention. Specifically, an attorney will draft a waiver of deficiency to be included with the short sale.
The waiver is added to protect the seller from the bank seeking a deficiency judgment, that is the difference between what the bank earns from the short sale and the amount owed on the mortgage plus the attorney fees. If the bank doesn’t come after the difference as soon as the short sale is completed, it doesn’t mean that the original homeowner is off the hook; actually, the bank has up to a year to file the deficiency suit with the court on a residential property.
If you’re working on a short sale in order to avoid foreclosure, make sure that it’s all done correctly from the beginning. Schedule a free consultation with one of our attorneys so that we may discuss what the Graham Legal team can do to avoid any further action from the bank once the house is sold.