Inverting an Upside Down Mortgage
Falling behind on your mortgage can be one of the most frightening consequences of a debt crisis. In this situation you need a Tampa short sale lawyer to advise you about your options.
Many individuals look to sell their homes in order to get out of their overwhelming mortgage debt, only to find the fair market value is less than what they owe their lender. This negative equity situation is commonly referred to as being upside down on your mortgage.
Fortunately, there is a way to both appease your lender and walk away free from mortgage debt – the short sale. The short sale process is a viable and effective method to avoid foreclosure and protect your credit rating from significant damage. While it will be noted on your credit history, it won’t have nearly the harmful impact a foreclosure can create.
As a Tampa short sale attorney I can provide you with the insightful legal counsel and assertive representation you need to negotiate a favorable short sale agreement.
Benefits of a Short Sale
The increased prevalence of individuals facing financial distress combined with declining housing markets has made lenders more amenable to short sales agreements. Short sales involve selling the home for reasonable market value, instead of the amount that is due on the loan. The lender must agree to accept the lower amount rather than the full amount of mortgage debt that is owed. The process can provide a favorable solution for both the homeowner and the lender.
When a home is foreclosed upon, the lender takes control of property, including its future resale. In contrast, a short sale allows the lender to evade the disadvantages of a foreclosure, which include:
- Cost of any legal action taken against the current borrower
- Locating a new buyer for the property
- Insurance and other costs of maintaining the vacant premises
- Paying a broker’s commission
A short sale can provide significant financial breathing room for individuals who find themselves confronting upside down mortgages. Short sales provide mortgage loan borrowers with the benefit of:
- Elimination of monthly mortgage payments
- Ability to avoid the severe credit rating impact of a foreclosure
- Ability to walk away free and clear from the debt
Experienced Tampa Foreclosure Defense Attorney
I have dedicated my practice to helping individuals employ effective and beneficial measures to alleviate the fallout of a debt crisis. I am an experienced Tampa bankruptcy lawyer and foreclosure defense lawyer, as well as a Certified Mortgage Foreclose Mediator. I know what requirements lenders look for when it comes to short sales agreements, as well as the best way to achieve those agreements.