SHORT SALES

 

Donna M. Quinn, Esq, a Metrowest Real Estate Lawyer, has experience working with homeowners and lenders in a short sale transaction.  Our office will work with you to assemble the proper documentation and guide you through the complicated and time consuming process.

A short sale transaction occurs when the proceeds from the sale of your property are not sufficient to pay off the current lender in full.  Upon review of the required short sale documents, your lender may agree to accept a payoff that is less than the mortgage amount owed.  In a short sale transaction, all proceeds less any costs approved by the lender shall be paid to the lender from the closing.

Lenders are increasingly more receptive to short sales before beginning the foreclosure process to eliminate the expense of foreclosure, legal fees, auctioneer fees, eviction process fees, delays from borrower’s bankruptcy, damage to the property, costs of maintaining the property as well as the costs associated with the resale of the property.

In evaluating whether a short sale will be considered, the lender will hire a local real estate broker or appraiser to evaluate the value of the property. (“BPO” or broker’s price opinion)  The lender will most often also require the following documents be submitted as part of the short sale package before a decision can be determined:

• Hardship Letter
• Completed Financial Statements
• Hardship Documentation
• IRS Tax Returns (usually 2 years)
• Paystubs (usually 2 months)
• Bank Statements ( 4 months)
• Listing Agreement with Broker
• Offer to Purchase/Purchase and Sale Agreement
• Preliminary title report
• Preliminary HUD 1 Settlement Statement
• Written Notice from junior lien holders (if any)

The lender will review this documentation to determine whether a short sale transaction will be approved.  Typically, a short sale will need to close within 30-45 days after the lender short sale approval. It is advisable to retain the counsel of an experienced Real Estate Lawyer prior to contacting your lender.

 

MORTGAGE MODIFICATIONS

 

Donna M. Quinn, Esq., an experienced Real Estate Attorney, will work with you and your current lender to modify the terms of your existing mortgage obligation.  We strive to alleviate the financial stress and uncertainty and to achieve a satisfactory result for both you and your current lender.