Short Sales and Deeds in Lieu of Foreclosure
At HoganWillig, we work hard to help our clients keep their homes in the face of a foreclosure. However, there are times when it does not make financial sense to continue sinking money into an “underwater” home.
If you are prepared to walk away from your property, we can help you explore your options. Depending on the facts of your case, the attitude of your lenders, and your individual goals, one of the following options may be appropriate:
- Short sale: In a short sale, your lender agrees to let you sell your property for less than the amount you owe on your mortgage, and it accepts the proceeds of the sale as a repayment of your loan. Ideally, in a carefully negotiated short sale, you can give up the property without owing a deficiency balance for the unpaid portion of the loan.
- Deed in lieu of foreclosure: A deed in lieu of foreclosure is a way to transfer your property to your lender in place of repaying your mortgage. The end result is the same as in a foreclosure, but this process may not place a foreclosure on your credit report, and you may avoid owing a deficiency balance after the bank sells the property.
It can be very difficult and frustrating to try and deal with the bank on your own. Your bank may still move forward with a foreclosure while negotiating with you, or you may end up signing a modification agreement that is NOT in your best interests. Working with an experience lawyer is essential to avoid these pitfalls.
Contact us at 716-636-7600 if you have any questions or would like to schedule a consultation.