Short Sale Lawyer Provides Advice and Direction to Indebted Homeowners
When a homeowner falls behind on his or her mortgage payments, things can quickly go from bad to worse. Even missing your mortgage payment by a single day can be considered a breach of your mortgage agreement and can result in the lender initiating collection activities. Most mortgage lenders will follow the same pattern of activities once a payment has been missed, such as:
- The lender begins by telephoning the borrower and attempting to secure payment or a mutually-acceptable payment arrangement;
- Late fees may be imposed if the payment becomes 15 (or more) days past due;
- The lender may increase collection activities by sending letters and making additional phone calls;
- If these activities fail to yield any results, the lender may accelerate the loan and demand that the entire loan balance be paid in full; and
- As a last resort, the lender may initiate foreclosure procedures to remove the homeowner from the home, return possession and ownership of the home to the lender, and then sell the home to another buyer.
Even if a foreclosure is carried out, the homeowner may remain liable for any difference that exists between the amount the borrower owed on his or her mortgage and the amount for which the foreclosed home sold.
Is There an Alternative to Foreclosure?
Lenders typically resort to foreclosure only when other methods of attempting to regain ownership and possession of the home have failed. This is because foreclosure is a time-consuming and costly process. Homeowners behind on their payments and who cannot make up their deficiency may get the lender to acquiesce to a short sale of the property.
In a short sale, the borrower sells the home for fair market value or as close thereto as possible and the lender agrees to accept this amount as satisfaction of the borrower’s debt. But short sales must comply with certain regulations and laws and can be complicated to carry out. The Mehra Law Group can help borrowers who are facing foreclosure explore the possibility of a short sale with their lenders. If your lender approves, we can assist you in carrying out the short sale in compliance with applicable rules and laws.
Contact the Mehra Law Group right away if you are considering a short sale by calling (718) 347-6800. We will take the time you need to review your options and help you to pursue the best legal strategies possible in your case. Don’t delay – call us now to receive the seasoned legal representation you deserve.