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Short Sale

Are you considering a Short Sale of your Property, but you have questions in reference to the Short Sale process?
The Law Offices of Douglas J. Jeffrey, P.A. may assist you in answering the most common questions in reference to the Short Sale process, and in determining if it is the appropriate avenue for you. We can even direct you to a licensed Florida Realtor to assist in the non-legal aspects while we protect your legal rights in Court during any legal proceedings. We are also available to assist in any Short Sale negotiations.

A Short Sale is when a Lender agrees to discount a loan balance due to a hardship on the part of the mortgagor(s) or borrower(s). The home owner(s) or debtor(s) sell the mortgaged property for less than the outstanding balance of the loan or applicable loans, turning over the proceeds to the lender(s) and paying off any other existing liens. Many Lenders will allow a Short Sale if they believe that it will result in a smaller financial loss than continuing to foreclose on the property, and this may save you from a potentially large deficiency judgment that would otherwise be obtained at a Foreclosure Auction. If the Short Sale is consummated, it may also resolve other legal disputes relating to the property. In the event any indebtedness is to be forgiven, you should consult with a certified public accountant and/or an enrolled agent (with the IRS) for proper tax-related advice.

The Short Sale process itself is a lengthy and complex negotiation involving a substantial amount of paperwork and time. Because most of the process is in the control of the Lender(s) involved, once a potential purchaser is under contract, a successful negotiation may take between three to six months, if not more. During this time, you will continue to reside at the Property without paying your mortgage payment or certain other obligations. Your Short Sale Package will require that you timely produce personal and financial information, and the Law Offices of Douglas J. Jeffrey, P.A. will help guide you through this process should you retain our services.

During the Short Sale process, you will not be personally responsible for paying any Realtor fees, and in many instances the Lender(s) will not require you to bring any additional money to the closing for outstanding Liens or encumbrances on the property, including property taxes, association fees, or maintenance fees. Obviously, every situation is different, but the end result may protect you from having further legal obligations should the Lender(s) approve the Short Sale and the Closing be consummated. It is common for Lenders to request additional information once the Short Sale process has commenced including recent financial documentation, especially once an Offer has been accepted by you (all offers are subject to Lender approval). It is very important that you furnish requested information as soon as possible, because failure to timely provide information could result in problems with consummating the Sale or frustrate the entire Short Sale process.