If you have been served a foreclosure notice or the market value of your home has become lower than your mortgage debt, short sale may seem like an attractive option to you. However, like a majority of real estate transactions, there are several legalities involved in the short sale process that can potentially affect your finances.
If you are wondering whether you should consider working with an Elgin real estate attorney, the short answer is: yes, you should. Most homeowners, who struggle to pay off their mortgage find themselves facing foreclosure, and in order to avoid financial hardship, go for a short sale. However, without proper legal guidance, you may be left in worse shape than you already are.
There are several aspects of a short sale where a real estate attorney can help you stay away from potential pitfalls and allow you to see through the process.
Help you Understand the Short Sale Agreement
Every short sale agreement comprises of terms and conditions involving complex language that may be hard to understand for a person without a legal background. Before you sign on the dotted line, you need to make sure you understand every sentence so that there are no unpleasant surprises after the closing. If you are working with a real estate agent only, they may not be able to interpret the exact meaning of the terms. In such a situation, it is best to have an attorney by your side to advise you regarding the legal effects of the short sale agreement.
Avoiding Deficiency Judgements
The difference between the total mortgage debt and the sale price in a short sale is known as deficiency. Lenders can seek a deficiency judgement from you after the short sale to recover the outstanding amount by levying your bank account or garnishing your wages. When you work with a real estate attorney, they help you deal with or avoid a deficiency judgement. They may negotiate a deficiency waiver with your lender or at least convince them to settle for a lower amount. In some cases, an attorney may suggest that you file bankruptcy to avoid deficiency judgements.
Legal Advice to Avoid Foreclosure
There is always a risk of things not working out in a short sale. If this happens, your lender is likely to pursue a foreclosure, which you were trying to avoid in the first place. A real estate lawyer can review your case and find out ways to avoid foreclosure. They may negotiate with your lender and work out a deal to restructure your mortgage plan, making it easy for you to make payments and avoid foreclosure. Depending on your individual circumstances, an attorney will enlighten you with all the options you may have.
Consult with an Elgin Real Estate Attorney Today
The short sale process is complicated and involves many legal intricacies. In order to avoid any potential pitfalls, you should consider working with an experienced and reliable real estate attorney. For more information, contact Jackson Abdalla Law Group today at (773) 550-3853. We represent clients in Kane County and the Greater Chicago area.