Martin Law Group, P.C.

What is a Short Sale?

A short sale is a real estate transaction in which a mortgage holder agrees to accept less than the outstanding loan amount so that a property owner can sell his/her property. A short sale benefits both the owner and the mortgage holder because it enables both parties to avoid an unnecessary and undesired foreclosure.

Who Needs a Short Sale?

A short sale might be needed if the owners:

Need to sell property in a weak real estate market;
Suffer a health crisis;
Are subject to a suddenly unaffordable adjustable rate loan;
Get divorced;
Suffer the death of a spouse;
Are laid off or transferred; or
Wish to minimize damage to their credit rating.

How Can We Help?

We assist our clients by meeting with the lender and providing information about the owner and the real estate market to arrange a short sale that benefits everyone. Short sales are guaranteed. A lender needs to be convinced that the proposed short sale is in its best interests. Convincing the lender that accepting less money than the amount that is due is the most difficult part of a short sale transaction.

Short sales are very different from the typical real estate transaction. They are more complicated and time consuming for the attorney coordinating the short sale and usually have much stricter requirements that must be complied with than an ordinary sale.

What Should an Owner Who Needs a Short Sale Do?

Before your property is listed for sale. An owner who needs a short sale should first contact our office to review the likelihood that a short sale can be arranged. This entails a review of the owner's situation, the current real estate market where the property is located, and the foreclosure market in general. This initial consultation is free.

If a short sale seems possible. If it seems likely that your mortgage holder can be convinced to accept a short sale, assuming you wish to proceed with it, we will contact your mortgage lender and begin the process of reaching an agreement to sell the property.

Once an agreement is reached. Assuming your lender agrees to a short sale, you cannot personally sell your property. Instead, your home will be listed with a reputable real estate agent at an agreed upon price. This price almost always includes all the costs associated with a sale, including attorney's fees, real estate agent's fees, taxes, and other expenses. Thus, if and when the sale goes through, you pay nothing and walk away owing no money on your mortgage or as a result of the sale.

Why should you retain this firm to help you with a short sale? This office has represented buyers, sellers, and banks for years. Further, we have represented the Dutchess County Association of Realtors for many years. In short, we know real estate. We have negotiated short sales and have worked with the different parties who are likely to be involved. Successful negotiations require a knowledge of the subject (real estate values) and your legal rights (we have litigated land cases when necessary). This is why we believe that only a knowledgeable attorney can maximize your chances of completing a short sale.

Why Will a Lender Agree to a Short Sale?

If a lender is provided with the relevant information in the right way, they should realize that a short sale is far more beneficial to them than a foreclosure sale. Lenders are not in the business of managing and owning property. Lenders are in the business of managing money. A well-crafted short sale helps lenders avoid the hassle of going through a foreclosure proceeding and ending up owning property that they do not want or receiving the miniscule proceeds that often result from a foreclosure sale.

Contact Us Today!

If you think you might need a short sale, contact our office today. We will work to obtain the best possible agreement so that your property can be marketed and sold based upon its current market value.