Marlton, NJ Short Sale Attorneys
Will a Short Sale Solve Your Financial Problems?
When facing a looming home foreclosure, many people consider a short sale, believing they will be capable of satisfying liens and evading serious debt and credit problems. However, not only do short sales require a significant amount of time and expense, they are frequently unsuccessful. Even when a short sale is successful, it frequently only serves as a band-aid — addressing only one component of the overall financial burdens faced by the debtor.
When you find that you cannot maintain regular payments on your home, vehicle or other financial obligations, talk with an experienced lawyer who can evaluate your full financial situation, explain the options available and provide you with the knowledgeable advice necessary to enable you to make an informed decision regarding your financial future. Schedule an initial consultation by contacting us online or calling (856) 988-9055 to arrange a consultation.
Short Sales: Lawyers Who Know the Risks
Negotiating a short sale is an extremely difficult process that usually involves multiple lien holders. While many homeowners will spend endless hours in an attempt to contact and negotiate approval of a short sale with the primary lender, many times, the secondary lien holders are forgotten. Unfortunately, unless all listed lien holders agree, the short sale cannot move forward.
Advanced title work is vital in order to ensure all liens, encumbrances against the property and judgments against the property are known. And in many cases, due to the extremely limited time frame in which short sales must be conducted, title insurance companies will require escrow of multiple times the amount of judgment liens against the property in order to ensure the escrow covers the amount of the judgment, as well as accrued penalties. The vast majority of short sale negotiations are unsuccessful due to the number of lien holders that are typically involved.
Unless the property is your primary residence, debt that is eliminated or forgiven through a successful short sale is considered a TAXABLE EVENT that will need to be reported in your next tax filing. However, an equivalent discharge through a bankruptcy filing is not considered a taxable event, and cannot haunt you in the next tax year.
Additional Pitfalls of Short Sales:
- Timing for occupants to move out: When a short sale is completed, occupants must vacate the property. However, occupants may still be allowed to remain on the premises during foreclosure proceedings, which can last up to a year and even longer. For many people, this provides a place to stay while they file for bankruptcy to delay or stop foreclosure and get financial matters sorted out.
- Other financial problems: Most people who start falling behind on mortgage payments typically have financial problems that entail much more than just the mortgage. While short sales may address the mortgage issue — if successful — they cannot address many of the other financial problems faced by debtors, such as overwhelming credit card debt, medical bills, judgment liens or other personal obligations. Additionally, a short sale may cause you to incur new financial obligations, such as home repairs, that you cannot afford. Bankruptcy, however, can help you deal with all of your financial concerns and obtain a fresh start.
Serving All of South Jersey, Our Foreclosure Attorneys Help You Deal With the Whole Financial House, Not Just One of its Rooms.
In a short sale, everyone benefits — except the debtor. Our bankruptcy lawyers look at the whole picture and help you devise a strategy tailored to obtain debt relief and regain control over your finances.
The Law Office of Andrew B. Finberg, LLC is located in Marlton, New Jersey and provides skilled legal counsel to individuals needing help with bankruptcy in Cherry Hill, Voorhees, Mount Laurel, Morristown, Maple Shade and serves Burlington, Camden and Gloucester Counties.
We are proud to be a federally designated debt relief agency.
We help people file for bankruptcy relief under the Bankruptcy Code.