A Way to Avoid Home Foreclosure
If you are a homeowner who faces unmanageable debt on property that is now worth less than the outstanding mortgage, you may be tempted to simply walk away. However, walking away and allowing the mortgage company to foreclose on the property can affect your credit for years to come. It can also expose you to liability for any deficiency by the foreclosing creditor and any second or other junior mortgage holder.
At the law firm of Weintraub & Selth, APC, we seek to provide comprehensive and creative solutions to homeowners who are burdened by mortgage debt. Two of those solutions are short sales and sale-leasebacks. Our lawyers can represent distressed homeowners across the United States even though we are located in Los Angeles, near Santa Monica and the majority of our clients reside in southern California.
What Is a Short Sale?
With a short sale, you place your home on the market and get your best offer. Even though that offer may be less than the full amount you owe, you can present it to your mortgage company in exchange for the note. Even though the lender does not receive full payment, they will not face the expense and delay of a foreclosure proceeding. It saves you stress and aggravation, can limit damage to your credit and sometimes results in a small payment of cash to you.
It's important to get a lawyer's advice to determine if a short sale is in your best interests. Our lawyers can negotiate a release so you are not personally liable for any deficiency in your payment. However, you may have tax consequences for the cancellation of indebtedness. Under these circumstances bankruptcy may be the best choice. We can analyze all of the issues and help you make the right choice.
What Is a Sale-Leaseback?
A sale-leaseback works like a short sale, except you sell the property to a friendly third party (such as a relative) who leases the property back to you.
For more information: To discuss short sales and sale-leasebacks with one of our Los Angeles attorneys, call (310) 584-7702 ((866) 572-2423 toll free) or complete the contact form on this Web site. Se habla español.
