RAMSINGH & ASSOCIATES, P.A.
Ramsingh & Associates, P.A. is proficient in handling Short Sales. One of the many benefits of using Ramsingh & Associates, P.A. is that you have a real estate attorney negotiating directly with your lender to approve the Short Sale.
WHAT IS A SHORT SALE?
A short sale is a process in which one is trying to avoid foreclosure on their home, and the option to short sale the property is exercised. When a property is sold in a short sale the property is sold for less than the balance owed to the lender in order to pay the lender that amount to settle the debt. In this process the settlement amount is specified. It is important to note that in some cases the borrower may still owe the lender even after the property has been sold in order to pay down the debt.
Through this process the lender determines whether they will accept an offer made on the Property as settlement on the mortgage debt. Lenders are becoming more and more willing to work with borrowers who find themselves in a position where they are facing foreclosure and the option of a short sale may help to salvage their credit.
If approved by the lender in a timely manner, the following are some of the benefits of a properly performed short sale in Florida:
· Avoid foreclosure. A foreclosure provides long term damage to on one's credit rating. In addition to the foreclosure a person may be faced with a deficiency judgment as a negative consequence of the foreclosure. This can possibly be avoided by the successful negotiation of a short sale.
· Avoid bankruptcy. Through the Short Sale process a homeowner may be able to avoid filing bankruptcy by successfully selling the house therefore avoiding a bankruptcy filing.
· Possibly eliminate the balance of a mortgage and/or home equity loan. In many instances when the property is the homesteaded property forgiveness may appear in a short sale situation. It is not guaranteed but it may occur.
WHAT IS A LOAN MODIFICATION?
A loan modification is a permanent change in one or more of the terms of a borrower's loan, which allows the loan to be reinstated, and usually results in a payment the borrower can afford. A loan modification occurs to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender may be open to modifying a loan because the cost of doing so is less than the cost of default, which includes foreclosure.
A loan modification agreement is different from a forbearance agreement. A forbearance agreement provides short-term relief for borrowers who have temporary financial problems, while a loan modification agreement is a long term solution for borrowers who will never be able to repay an existing loan based on the borrower's current terms and conditions of their loan.
HOW CAN RAMSINGH & ASSOCIATES, P.A. HELP?
Struggling financially can be a difficult and complicated situation. Many people do not realize that there are other options apart from foreclosure to ease out of a difficult situation. A short sale is a possible way to avoid foreclosure while providing time and protection. Short sales are complicated transactions which are time consuming and are best handled by a qualified real estate attorney. Additionally, the negotiations with a bank can be very difficult as it requires convincing the bank to accept less than what is owed on the mortgage. Taken the complexity of negotiating a short sale, it is critical to retain an experienced and knowledgeable attorney to oversee and negotiate the transaction.
Let us put our experience to work for you. If you have questions about whether you should initiate a short sale to avoid foreclosure, be assured you will receive sound advice from Ramsingh & Associates, P.A.
Contact us at 772-924-8888 to ease you through your short sale or loan modification!