What is a short sale?
If the property is worth less than the amount owed to the lender, the homeowner might consider a short sale. A short sale is where the homeowner lists the property for sale at a price below the amount owed to the lender. The purpose of doing a short sale is that the homeowner gets out from underneath a debt without owing the lender any money. In order to accomplish a short sale, the lender must agree to take the amount the property sells for in full satisfaction of the debt. Lenders are often willing to do this because it saves them time and money when compared to proceeding through the courts and auctioning the property (often to themselves) then having to resell the property.
As with loan modifications, it is essential to have a good foreclosure defense attorney handling the case while the homeowner’s real estate agent attempts to sell the property. This is true for several reasons but mainly due to the fact that the lender could successfully foreclose before there is time to conduct the sale. If that happens the homeowner loses the property and could be liable for the shortfall between the amount owed and the price the house sells for at auction or the fair market value of the property at the time of auction. Vanstone Law Firm will also review the contract for sale to make sure the lender is not able to pursue the homeowner for any shortfall once the sale is completed.
What is a deed in lieu?
A deed in lieu can be an effective tool when the homeowner simply wants to walk away from the property without owing any additional money to the lender. As with a short sale, this option would only be considered if the property is worth less than the amount owed on the loan. A foreclosure defense firm can negotiate with the lender in an attempt to obtain a deed in lieu of foreclosure. Again, if a lawsuit has already been filed, a foreclosure defense attorney is essential so that they can defend the foreclosure action while attempting to negotiate with the lender.
What is a consent judgment?
A consent judgment is where the lender has filed a foreclosure lawsuit and the attorney for the homeowner contacts the attorney for the lender and works out an arrangement where the lender is able to take a judgment in exchange for waiving any potential deficiency and/or allowing the homeowner to remain in the property for an agreed upon time frame. Often, the homeowner has attempted and failed at some or all of the other tactics described above and simply wants some additional time to move out of the home and make sure they will not be liable for any additional monies. In some cases, the lender will pay moving expenses to the homeowner. As part of this process, the homeowner’s attorney can request relocation fees/moving expenses from the lender which will often help the homeowner to get set up in their new residence.
In summary, there are many options that might be available to a homeowner who has defaulted on their mortgage. A highly experienced attorney is essential in order to properly analyze your potential options and pursue your goals. If you choose Vanstone Law Firm, we will be there with you every step of the way, no matter which option you choose.