Tag Archives: what is short sale

Short Sales vs Foreclosure

Posted on April 11, 2013 by Blick Law

Homeowners are often unsure of what options are available when they reach financial hardship and are faced with foreclosure. A short sale can be a helpful tool when trying to alleviate the burden of a looming foreclosure.

A short sale is an agreement by a mortgage lender to sell property for an amount lower than the balance owed in order to relieve the buyer of the mortgage obligation.  Depending on the negotiated amount of the sale and the timeliness of past mortgage payments, a short sale may help avoid the huge hit to your credit score that foreclosure causes. Additionally, short sale participants can later purchase a home in a shorter time than those who foreclose on their property.

A short sale can be completed by finding a buyer to purchase the home who is willing to pay current market value, and having the mortgage provider agree to the sale. Any shortage after the sale will then either be written off by the lender and an IRS 1099 is issued to the seller, or a deficiency remains which the lender may pursue to collect against the seller.

The short sale process can be complicated, and the lender may not be willing to negotiate. It is important to know that a real estate attorney can help negotiate the sale and terms with the mortgage lender and provide you peace of mind that your sale is being handled by an accountable professional.

If you have legal questions regarding your short sale or you are considering your options, call Blick Law Firm today at (813) 931-0840 to schedule a free 15-minute consultation with attorney Michael Blickensderfer.

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Tampa- Banks incentive program to borrowers cause spike in short sale

Posted on February 9, 2012 by Blick Law Firm

Short sales are a lenders best friend! Only until recently, Lenders are starting to embrace the idea of Tampa bay short sales.

In the past three years, there has been a 350% increase in the amount of homes sold through short sale, according to Corelogic’s most recent numbers.

How are banks benefiting from this?

Banks benefit because it decreases the large amount of foreclosures, alleviating the court systems of back logs related to foreclose cases pending.

In a short sale, there is a seller & buyer.  The seller gets out of their home, often with a cash incentive to help with relocation expenses, and most banks do not hold a deficiency judgment against them.

The buyer gets a nice home at a very reasonable cost and  neighborhoods do not suffer from run down or vacant property.  Therefore, the bank is satisfied as well as cultivating economic stability and growth.  Everybody wins!

If you fear you are in danger of losing your home, don’t hesitate.  Think Quick!  Call Blick!  Our real estate department is ready to counsel and guide you towards your best option for you and your loved ones. Call us today at 813-931-0840 and receive a free consultation! Just mention this article!

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