Realizing that your home is at risk of foreclosure can be incredibly stressful, and our Oak Park foreclosure defense attorneys know how difficult it can be to understand your options under these circumstances. One common way to avoid foreclosure is the short sale, and our firm routinely represents clients in short sales in the Chicago area. What do you need to learn about short sales and how they work? The following are some of the top things to know about a short sale to avoid foreclosure.
Short Sales Stop Foreclosure
The first and most important thing to know about a short sale is that it is an option for avoiding foreclosure. What is a short sale? As Rocket Mortgage explains, the term “short sale” refers to selling your house for less than the amount that you currently owe on the mortgage in order to prevent the home from going into foreclosure. A short sale does not allow a homeowner to remain in the property since they will be selling it, but it does offer an option for avoiding the damage to your credit that would come with a completed foreclosure. Short sales do still impact your credit, but not to the extent of foreclosures.
Short Sales Require Agreement From the Bank or Lender
A short sale requires the homeowner to get permission from the bank or lender in order to move forward. Since you will be selling your home for less than what you owe on the mortgage, the lender has to agree to the amount that the home will be sold for and must agree to the overall sale. Short sales are often beneficial to lenders when a homeowner has an underwater mortgage and cannot continue making payments because the lender may be able to get more money for the home than they would with a foreclosure. A foreclosure defense lawyer in Oak Park can work with your lender to secure approval for the short sale.
Short Sales Do Not Leave You at Risk of a Lawsuit for the Remaining Amount Owed
With a short sale agreement, your attorney will also typically have the lender agree to forgive any remaining debt you owe on the mortgage as a result of the short sale. As such, you will not have to worry about being sued for the remaining amount owed. You may, however, owe taxes on the amount forgiven.
Contact an Oak Park Foreclosure Defense Attorney
Are you currently at risk of foreclosure and wondering about your options? You may have multiple options available to you, but a short sale is frequently a good option for homeowners who want to avoid foreclosure but know they do not have options for remaining in their homes. Whether you want to learn more about a short sale and receive legal help with the process, or you want to find out about other options for avoiding foreclosure, you should get in touch with one of the experienced Oak Park foreclosure defense lawyers at our firm. We have years of experience representing consumers and homeowners in the Oak Park area, and we can speak with you today. Contact the Emerson Law Firm to find out more about how we can help you with foreclosure defense options.
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