When a homeowner is having difficulty paying off their mortgage after their home’s value has dropped, either due to purchasing a home at the top of the market or because they were made the victim of a financial scheme, they most likely have several concerns. If you’re in debt because your mortgage is worth a significant amount more than your home is, you may consider a short sale. Please read on and reach out to the experienced New York City real estate attorneys from Zimmet Law Group, P.C. today to learn more about short sales and whether one can benefit you. Here are some of the questions you may have:
What exactly is a short sale and how can it benefit me?
In simple terms, a short sale is when a lender accepts a loan payoff that’s worth less than the value of the mortgage. Though a short sale can potentially impact a homeowner’s credit, it does not have the same potential impact on their credit as bankruptcy or a foreclosure on their home. That said, a short sale is not always the ideal option, and is typically only viable when real estate debt is a homeowner’s only debt. For example, if you are unable to pay off your mortgage because you’ve amassed a significant amount of credit card debt, then filing for bankruptcy is most likely your best option.
How do I know if I qualify for a short sale?
To qualify for a short sale, you must first prove you’re unable to afford your mortgage. If the lender can prove that you are actually capable of paying off your mortgage, you will most likely be rejected from the short sale program. There are a number of other circumstances wherein a lender may reject a short sale, such as if there are multiple loans on the payoff offered. Though short sales are far from guaranteed, for many, they are a great tool to get out of debt and have a fresh start. If you have any additional questions or believe you may qualify for a short sale, simply pick up the phone and give us a call today. We are here to help you in any way we can.
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Zimmet Law Group, P.C. is an experienced team of attorneys guiding clients through matters of estate planning and administration, divorce and family law, real estate, commercial litigation, business law, bankruptcy, and landlord-tenant law. If you require the services of an effective New York City attorney, contact our firm today to schedule a consultation.