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Short Sales

At Kocinski Law Offices, LLC, we will help you to walk away from a property you can no longer afford and avoid foreclosure. We will work with your mortgage company and your realtor to negotiate a short sale. We will do our best to protect you from any deficiency judgment that would otherwise be entered against you. An experienced short sale attorney will guide you throughout the process and apply for the program that is right for you.

If you would like to avoid foreclosure please contact us to schedule a consultation so one of our experienced short sale attorneys can help you to go through the short sale process and to avoid foreclosure.

 

What is a short Sale?
A short sale is a situation where the Owner of a real estate property can no longer afford to keep the property and desires to sell it but the expected proceeds are insufficient to pay off the full mortgage balance and pay for all the costs associated with the closing. Therefore, an authorization from the mortgage holder needs to be obtained to complete the sale. Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
How do I start the short sale process?
If you desire to sell your property and you cannot afford to maintain the payments, a real estate agent needs to be contracted so the property can be listed on the market.  The property should be listed on the local Multiple Listing Service (MLS) so that the property receives proper exposure and a Buyer can be found.
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
The property has been listed but there are no offers?
You and your realtor need to discuss the pricing of the real estate to make sure it is priced competitively with the fair market value range of the area. Price adjustments should be made accordingly to the fair market value of the property.
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
You received an offer.  What is the next step?
 Once you receive an offer you should collect all the documents that your lender requires to negotiate your short sale.  Banks vary on their requirements but in many instances require at a minimum last two years tax returns, last three months bank statements, 60 days of paystubs or 6 months profit and loss statement for the self-employed, a hardship letter and some form of financial statement.  A timely submission of all required documents makes the short sale process more efficient.
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
How long does the short sale process take?
Once all the property documentations are submitted to the bank it may take between 60-90 days to get a response from the bank.  Each lender has its own timelines and procedures.  They need to analyze your financial situation well as obtain a fair market value of the property you are selling.  The bank usually orders a Brokers Price Opinion (BPO) to obtain the value of the property.  Based on the information gathered the bank issues a decision.  It may be an approval, a counter offer or a denial.
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
Does the bank accept all short sales?
Not all banks accept all short sales submitted to them.  The Mortgage holder evaluates their situation and your situation to make the determination.  It also varies depending how advanced is the foreclosure process on the property.  The closer the auction date is the harder it is to negotiate the short sale.
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
Do I need an attorney to do a short sale?
You should have a lawyer. Usually, there's no cost to you in a short sale because all the expenses come from the proceeds of the sale. There may be legal documents that need an attorney review as well as there are legal consequences of proceeding with a short sale.  An attorney will review your title, negotiate your offer with the Buyer's attorney, can help or be the primary negotiator of the short sale, prepare all documents for closing and represent you at closing.  An attorney's oversight of these matters is a key to a successful short sale process.
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
Does a short sale have tax consequences?
A short sale may have tax consequences and it is important that you consult with your tax advisor before you decide to proceed with a short sale.  If debt is forgiven then this may trigger tax consequences to you.
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
Will I be required to pay back the amount of the shortage or the deficiency balance of the mortgage?
Each lender issues an approval letter upon which terms the short sale can be completed.  The approval letter states these terms.  There are approvals that will waive the deficiency and the shortage will not be required to be repaid.  Some lenders may require a contribution to waive deficiency.  There are also instances where the deficiency is not waived by the lender.   Each situation is different; however, the purpose of short sale negotiator is to come up with the best solution for you.
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
Does a short sale stop the foreclosure process?
The short sale does not automatically stop the foreclosure process.  A bank reviews the short sale process but the foreclosure department proceeds with the foreclosure.  Bank may hold the foreclosure if an approval  for the short sale is imminent or issued; however, there is no requirement that they must.  
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
I have two loans.  Can I still do a short sale?
Yes, you may still be eligible for short sale but the process is more difficult.  Each bank, in most instances, has to be negotiated separately and each of them must agree to the financial terms spelled out on each other’s approvals.  It is usually the second lien holder that wants to reserve the right to pursue the deficiency after closing.  Short sales with two or more loans are lengthier to negotiate but not impossible.
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
If the property is not owner occupied; can I still do a short sale?
Yes, you may.  Your income from the investment property must be documented.  It is also harder to get a deficiency waiver on investment property.
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.
May I do a short sale after the Bankruptcy?
Yes, you may. Each situation is different. Therefore, the best option for you would be to contact us to discuss alternatives available to you. 
Please Contact Us (hyperlink to contact us form) to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.

 

What is a Short Sale?

A short sale is a situation where the Owner of a real estate property can no longer afford to keep the property and desires to sell it but the expected proceeds are insufficient to pay off the full mortgage balance and pay for all the costs associated with the closing. Therefore, an authorization from the mortgage holder needs to be obtained to complete the sale. Please Contact Us to schedule a consultation so one of our experienced attorneys can help you to determine if short sale is a possible financial solution for you.

 

How do I start the short sale process?

If you desire to sell your property and you cannot afford to maintain the payments, a real estate agent needs to be contracted so the property can be listed on the market.  The property should be listed on the local Multiple Listing Service (MLS) so that the property receives proper exposure and a Buyer can be found.

 

The property has been listed but there are no offers?

You and your realtor need to discuss the pricing of the real estate to make sure it is priced competitively with the fair market value range of the area. Price adjustments should be made accordingly to the fair market value of the property.

 

You received an offer.  What is the next step?

Once you receive an offer you should collect all the documents that your lender requires to negotiate your short sale.  Banks vary on their requirements but in many instances require at a minimum last two years tax returns, last three months bank statements, 60 days of paystubs or 6 months profit and loss statement for the self-employed, a hardship letter and some form of financial statement.  A timely submission of all required documents makes the short sale process more efficient.

 

How long does the short sale process take?

Once all the property documentations are submitted to the bank it may take between 60-90 days to get a response from the bank.  Each lender has its own timelines and procedures.  They need to analyze your financial situation and obtain a fair market value of the property you are selling.  The bank usually orders a Brokers Price Opinion (BPO) to obtain the value of the property.  Based on the information gathered the bank issues a decision.  It may be an approval, a counter offer or a denial.

 

Does the bank accept all short sales?

Not all banks accept all short sales submitted to them.  The Mortgage holder evaluates their situation and your situation to make the determination.  It also varies depending on how advanced is the foreclosure process is on the property.  The closer the auction date is the harder it is to negotiate the short sale.

 

Do I need an attorney to do a short sale?

You should have a lawyer. Usually, there's no cost to you in a short sale because all the expenses come from the proceeds of the sale. There may be legal documents that need an attorney review as well as there are legal consequences of proceeding with a short sale.  An attorney will review your title, negotiate your offer with the Buyer's attorney, can help or be the primary negotiator of the short sale, prepare all documents for closing and represent you at closing.  An attorney's oversight of these matters is a key to a successful short sale process.

 

Does a short sale have tax consequences?

A short sale may have tax consequences and it is important that you consult with your tax advisor before you decide to proceed with a short sale.  If debt is forgiven then this may trigger tax consequences to you.

 

Will I be required to pay back the amount of the shortage or the deficiency balance of the mortgage?

Each lender issues an approval letter upon which terms the short sale can be completed.  The approval letter states these terms.  There are approvals that will waive the deficiency and the shortage will not be required to be repaid.  Some lenders may require a contribution to waive deficiency.  There are also instances where the deficiency is not waived by the lender.   Each situation is different; however, the purpose of short sale negotiator is to come up with the best solution for you.

 

Does a short sale stop the foreclosure process?

The short sale does not automatically stop the foreclosure process.  A bank reviews the short sale process but the foreclosure department proceeds with the foreclosure.  Bank may hold the foreclosure if an approval  for the short sale is imminent or issued; however, there is no requirement that they must.  

 

I have two loans.  Can I still do a short sale?

Yes, you may still be eligible for short sale but the process is more difficult.  Each bank, in most instances, has to be negotiated separately and each of them must agree to the financial terms spelled out on each other’s approvals.  It is usually the second lien holder that wants to reserve the right to pursue the deficiency after closing.  Short sales with two or more loans are lengthier to negotiate but not impossible.

 

If the property is not owner occupied; can I still do a short sale?

Yes, you may.  Your income from the investment property must be documented.  It is also harder to get a deficiency waiver on investment property.

 

May I do a short sale after Bankruptcy?

Yes, you may. Each situation is different. Therefore, the best option for you would be to contact us to discuss alternatives available to you.