Is a Short Sale better than a Foreclosure and why? – Part III

What can one do to try to avoid having to experience this nightmare? Short Sale the property! A successful Short Sale can result in a win-win scenario for all parties involved. A Short Sale is an opportunity for the Mortgagor to try to prevent any version of the foreclosure nightmare while trying to actively mitigate the losses for all involved. A successful Short Sale handled by a Real Estate Attorney may result in the Bank or Lender releasing the lien of the Mortgage and also canceling (forgiving or writing off) the Promissory Note and providing a full release of their deficiency judgment rights. The best outcome of a Short Sale is the issuance of a 1099C which concept shall be left on the table for future discussion.

To conclude, Short Sale vs. Foreclosure? Short Sale should be chosen every time. Actively try to mitigate your losses. If you are in foreclosure, it is not too late. Most Borrowers in foreclosure can proceed with a Short Sale and most of the time it really is not too late. The Banks and Lenders welcome the Borrower controlling the process of liquidating the collateral for them. It is considered one less property that may have to go back into their inventory (if it doesn’t sell at the foreclosure auction), which would then require maintenance and carrying costs. Also, if it results in a successful Short Sale, it is one less “bad asset” than can be taken off of their books.

DELLUTRI LAW GROUP
3002 Del Prado Blvd. South, Ste. A
Cape Coral, Florida 33904
Ph.   (239) 549-0900
Fax. (239) 549-0902