Buying A Short Sale? Why You Should Call a Lawyer to Help with Your Transaction

People who are purchasing a home do not always need a lawyer, but there are some situations where it is absolutely essential for both your piece of mind and your protection — and buying a short sale qualifies as one of those situations. A short sale is a specific type of home sale that occurs when the homeowner is in financial trouble and they are trying to get out from their home mortgage debt. The homeowner asks their mortgage lender for permission to sell the home for a price that will not satisfy their mortgage because they are no longer able to pay their monthly fees or the balance that they owe.  The success of the transaction rests in large part on the bank’s willingness to lower the mortgage amount, and the process can be extremely time consuming, complex, and frustrating. Having an experienced real estate attorney acting on your behalf can make all the difference in understanding what is happening, making sure that all of the documents you submit satisfy the bank’s needs, and reviewing all agreements to ensure that you are well protected and know when to walk away. The attorneys at Wallace Law have the experience and knowledge that you need.

Most people wonder why a bank would ever agree to a short sale. After all, if they foreclose on a home they get the entire house and in theory would be able to sell it for a higher price. But banks are not in the real estate business, and they do not want to be. Though their obvious preference would be for the homeowner to stay in the home and pay their debt as per the original mortgage contract, a short sale can offer them the opportunity to avoid foreclosure, get some of their investment bank, and walk away from the situation before the house’s condition deteriorates and property taxes accumulate. Though these are all very good reasons, that does not mean that mortgage lenders are generally enthusiastic about the process. They require an enormous amount of documentation and the approvals for the reduced payment amount require many levels of involvement within their organization.

When you are the buyer of a short sale home, you are understandably anxious to get into the house. You want to have an inspection done and get the paperwork signed in order to expedite the process. Unfortunately that is not the way short sales generally work. Having an experienced real estate lawyer as your guide means that you will understand your need to be patient, as well as the speed with which the final closing may suddenly arise. At Wallace Law, we make sure that you are thoroughly protected, checking to make sure that there are no other judgments or liens against the home that need to be negotiated, as well as any building code violations or missing approvals for improvements that need to be addressed. We know the potential pitfalls and work hard to help you avoid them. Contact Wallace Law today for more information on how we can help you navigate the complexities of a short sale.