If you’re a homeowner who is behind on your mortgage payments, you may find that your lender services you with a notice of foreclosure. There are various options to choose from in this situation, but a short sale is often the best choice. You can settle any debt on your mortgage without going through with a foreclosure.
However, the path to a short sale can be complicated, with problems that make the process lengthier than expected. With the help of Glen Ellyn short sale attorneys, you can avoid many of these issues.
Junior Lienholders & Clear Title
In order to get a cleared title for your home after a short sale, the principle lender needs to obtain releases from any junior lienholders. In the case of a judgment lien, tax lien, HELOC, or second mortgage that means it has to be signed off by that lienholder and your mortgage lender. It can be challenging to get everyone to agree on the payoff amount, because each of them wants to gain more money. That can hold back buyers and make the process longer.
Another issue that is fairly common is being unable to close a deal because or incorrect or incomplete documentation. This could include documents with no signature, the wrong data, or other matters. This will put the sale on hold until everything is sorted out. Having Glen Ellyn short sale attorneys to go over the paperwork can nip this issue in the bud.
Length of Sale
There is also the problem with the length of time this real estate transaction might take. A short sale can be faster than other sales, but the lender is unlikely to agree to the first offer on the house. Sellers and buyers who are inexperienced with short sales may become frustrated and move on to another house before approval is available.
A buyer who is looking at short sales often want to provide a low offer for the property. Lenders, on the other hand, want to receive a good return. Low offers may not be considered and even sending them in can be a waste of time. You should only send in offers that are close to what the lender wants to get back.
Make Sure You’re Ready
At Covert & Covert, LLP, we specialize in short sales and deeds in lieu. Our workers are happy to help you determine what your best course of action would be. To find out more, you can reach the office at 630-717-2783.
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