Negotiation of Short Sales in Foreclosure Sales

Negotiation of Short Sales in Foreclosure Sales

By: Steven Baum

Steven Baum attorney

Although the foreclosure law firm of Steven J. Baum was known to file many foreclosure proceedings, there were times when a short sale occurred that stopped the foreclosure. A short sale is when a homeowner sells their home for less than what is owed on their loan. How does a borrower go about negotiating a short sale? Well, you have a New York foreclosure attorney who is also a residential foreclosure lawyer about to tell you.

You must have some indication of the value of your home. The best way is to call a local real estate agent but not an experienced foreclosure lawyer in New York. A real estate agent can search the public records using proprietary software and arrive at an estimate of value. After all, you are going to have to prove to your lender that what you are offering them once you get a contract of sale is a market value.

I would not recommend a commercial foreclosure lawyer to do this or even a New York Best Foreclosure lawyer. They do not have the experience necessary to evaluate properties. Once you have an indication of value you would begin to have a professional market your property. Chances are the sales price is going to be less than what you owe on your mortgage. You will have to present the contract to your lender and ask that after sale and payment of closing costs, that they accept the net proceeds of sale. Acceptance of the proceeds would be in full satisfaction of your debt owed to the bank.

If Steven Baum attorney from Steven J Baum PC had filed the foreclosure action, the bank would have told them to stop foreclosure proceedings. Even an experienced foreclosure lawyer in New York would have to do this. In essence, a short sale allows you to move on and not have to go through foreclosure. It may not be the most ideal option for someone in foreclosure, but it is definitely not the worst.

Legal Disclaimer: This article provides general information only. The information in this article is not and should not be construed to be legal advice. The transmission of the information found in this article and on this web page does not result in the formation of a lawyer-client relationship. This way their won’t be a top rated local foreclosure attorney filing any foreclosure papers against you.