Boston Estate Planning and Probate Lawyer & Attorney : Gosselin & Associates Law Firm : Serving Boston, Winchester, Hingham, Wellesley, Manchester

Gosselin Law's short sale group can be reached at 781-782-6000 or toll free at 877-325-6746. Gosselin Law has convenient office locations in Boston and throughout Massachusetts.

What is a Short Sale:

• When a lender accepts a discount on a mortgage to avoid a foreclosure or bankruptcy.

Why a Lender Would Take a Discount:

• They do not like excess inventory or bad loans on their books;
• Loss mitigators have incentive to clear up defaulted loans - short sales help do that; and
• Lenders know they can lose more money if a home goes to auction.

Lender "Short Sale" Factors:

• Whether the seller deserves a break due to: financial hardship caused by unforeseen circumstances (layoffs, divorce, illness, etc.);
• Whether it would be cheaper to repossess the home, fix and sell;
• How many other properties the lender has in default; and
• If co-signers are on the loan and can help pay the mortgage balance.

The Short Sale Process:

• Acquire a professional (such as a real estate attorney) with short sale experience.
• Contact the lenders 'loss mitigation department' to discuss the possibility of a short sale and determine the lenders process for completing the sale. This sometimes involves acquiring a 'Short Sale' or 'workout' packet.
• Seller must issue a signed 'Release' or 'Authorization to Release Information' to authorize the release of personal information about the loan and the property for the buyer or escrow agency.
• Lender will review the settlement statement indicating: sale price, loan balance, expenses, commissions and fees associated with closing the sale.
• Seller must complete a 'hardship letter' explaining the reason for wanting a short sale. The letter should include all information regarding the financial circumstances of the seller along with bank statements, investment account information, pay stubs and other necessary financial information.
• The lender will connect with the broker to provide a price opinion based on the condition of the home, market value, maintenance costs, etc.
• The lender reviews the purchase agreement and real estate commissions and weighs them against the cost of repossessing the home to sell or auction.
• If the lender finds the situation works in their favor, the short sale will proceed with the terms negotiated in the purchase and sale agreement.

Short Sale Mistakes to Avoid:

• Don't low-ball your offer. Lenders are trying to minimize loss and have a good sense of property values so make your offer as tempting as you can while staying inside your profit guidelines.
• Have a knowledgeable short sales professional on your side. Lenders are busy and do not have time to explain the process so make sure you know what you are doing, or find someone (like a real estate attorney or a broker with short sale experience) who does.
• Don't assume each lenders short sale process is the same. Each lender has different documents, requirements and regulations so don't foul up by making assumptions.
• The fewer loans on the property - the smoother the short sale process. Avoid complicating an already complex process by having a good handle on what's owed on the home.

Why Short Sale Knowledge is Important for Brokers and Real Estate Agents

• You can recognize  the opportunity to sell a home and receive commission on a home that would otherwise be repossessed by the lender or auctioned.
• To develop a favorable reputation among potential buyers (who stand to purchase a discounted home with a short sale) and among sellers (who will no longer go into foreclosure or declare bankruptcy) let the experienced short sale lawyers at Gosselin Law guide you through the MA short sale procedure. Very often the legal fees are negotiated with your lender as part of the short sale procedure. Gosselin Law's short sale group can be reached at 781-782-6000 or toll free at 877-325-6746. Gosselin Law has convenient office locations in Boston and throughout Massachusetts.

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The Law for Life blog has had many new readers lately. While we welcome them all, the sad fact is many are desperately searching for help because they have received notice of foreclosure proceedings against them.

They are frequently in difficulty due to increased mortgage payments caused by rising interest on adjustable rate loans (ARM). These increased mortgage payments are forcing many toward foreclosure and what is known as a "short sale." It is called a short sale, because the money from the sale of the home, is short of what is owed. It is a no-win situation for both borrower and lender. We can help.

Frequently, borrowers panic when they get that first foreclosure notice, instead of either calling the lender on their own to ask for more time or for help, or by consulting an attorney experienced in this area of law. We have helped many homeowners in exactly these kinds of situations and we may be able to help you. There is no charge for finding out.

The lenders do not want to foreclose on you any more than you want to be forced out of your home. Often there is room for negotiation that will involve compromise on the part of both sides. That's exactly where our skilled and experienced staff can help most. But start early, do not delay.

The worst thing a homeowner who gets the initial notice of foreclosure can do, is fail to communicate with the lender. Yet, many homeowners simply panic, hide, clam up or do nothing when the foreclosure notice arrives.

If you feel you can no longer support the payment on your mortgage and you are in danger of losing your home, we are available to discuss your situation and to help you find out what your options are. Often we can intervene on your behalf and negotiate settlements with lenders. In many cases our fees are included in the lender's expenses.

We recognize the stress and pain that comes from foreclosure. Our staff is experienced in handling these problems for clients. Often, just knowing exactly what the procedures are and the timetable for what will happen next are an enormous source of comfort. It is the unknown that is so scary. Please read our guide on short sales above.

Call 781-782-6000 or 877-325-6746 to speak with one of our experienced Massachusetts short sale lawyers.

 

 

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For better or worse we have a growing short sale specialty practice group, helping homeowners solve the problems associated with being 'upside down' on their home mortgages through short sales, deed in lieu transactions and arranging private sales.  Call us for a free consultation at 781-729-0313 to discuss.  There is no fee for the call and often our legal fees can be paid by your lender in the short sale.  Best wishes in the new year.

What is a Short Sale

• When a lender accepts a discount on a mortgage to avoid a foreclosure or bankruptcy

Why a Lender Would Take a Discount

• They do not like excess inventory or bad loans on their books
• Loss mitigators have incentive to clear up defaulted loans - short sales help do that
• Lenders know they can lose more money if a home goes to auction

Lender "Short Sale" Factors

• Whether the seller deserves a break due to: financial hardship caused by unforeseen circumstances (layoffs, divorce, illness, etc.)
• Whether it would be cheaper to repossess the home, fix and sell
• How many other properties the lender has in default
• If co-signers are on the loan and can help pay the mortgage balance

The Short Sale Process

• Acquire a professional (such as a real estate attorney) with short sale experience
• Contact the lenders 'loss mitigation department' to discuss the possibility of a short sale and determine the lenders process for completing the sale. This sometimes involves acquiring a 'Short Sale' or 'workout' packet
• Seller must issue a signed 'Release' or 'Authorization to Release Information' to authorize the release of personal information about the loan and the property for the buyer or escrow agency
• Lender will review the settlement statement indicating: sale price, loan balance, expenses, commissions and fees associated with closing the sale
• Seller must complete a 'hardship letter' explaining the reason for wanting a short sale. The letter should include all information regarding the financial circumstances of the seller along with bank statements, investment account information, pay stubs and other necessary financial information
• The lender will connect with the broker to provide a price opinion based on the condition of the home, market value, maintenance costs, etc.
• The lender reviews the purchase agreement and real estate commissions and weighs them against the cost of repossessing the home to sell or auction
• If the lender finds the situation works in their favor, the short sale will proceed with the terms negotiated in the purchase and sale agreement.

Short Sale Mistakes to Avoid

• Don't low-ball your offer. Lenders are trying to minimize loss and have a good sense of property values so make your offer as tempting as you can while staying inside your profit guidelines
• Have a knowledgeable short sales professional on your side. Lenders are busy and do not have time to explain the process so make sure you know what you are doing, or find someone (like a real estate attorney or a broker with short sale experience) who does
• Don't assume each lenders short sale process is the same. Each lender has different documents, requirements and regulations so don't foul up by making assumptions
• The fewer loans on the property - the smoother the short sale process. Avoid complicating an already complex process by  having a good handle on what's owed on the home.

Why Short Sale Knowledge is Important for Brokers and Real Estate Agents

• You can recognize  the opportunity to sell a home and receive commission on a home that would otherwise be repossessed by the lender or auctioned
• To develop a favorable reputation among potential buyers (who stand to purchase a discounted home with a short sale) and among sellers (who will no longer go into foreclosure or declare bankruptcy)

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Gosselin Law assists homeowners in Massachusetts and New Hampshire negotiate effective short sale, deed in lieu and other foreclosure alternatives. Call us toll free at 877-325-6746 for a no fee consultation. No fee is due unless homeowners complete a short sale. Here are some tips to help homeowners facing foreclosures. Note that we only provide our services in Massachusetts and New Hampshire.

What is a Short Sale

• When a lender accepts a discount on a mortgage to avoid a foreclosure or bankruptcy

Why a Lender Would Take a Discount

• They do not like excess inventory or bad loans on their books
• Loss mitigators have incentive to clear up defaulted loans - short sales help do that
• Lenders know they can lose more money if a home goes to auction

Lender "Short Sale" Factors

• Whether the seller deserves a break due to: financial hardship caused by unforeseen circumstances (layoffs, divorce, illness, etc.)
• Whether it would be cheaper to repossess the home, fix and sell
• How many other properties the lender has in default
• If co-signers are on the loan and can help pay the mortgage balance

The Short Sale Process

• Acquire a professional (such as a real estate attorney) with short sale experience
• Contact the lenders 'loss mitigation department' to discuss the possibility of a short sale and determine the lenders process for completing the sale. This sometimes involves acquiring a 'Short Sale' or 'workout' packet
• Seller must issue a signed 'Release' or 'Authorization to Release Information' to authorize the release of personal information about the loan and the property for the buyer or escrow agency
• Lender will review the settlement statement indicating: sale price, loan balance, expenses, commissions and fees associated with closing the sale
• Seller must complete a 'hardship letter' explaining the reason for wanting a short sale. The letter should include all information regarding the financial circumstances of the seller along with bank statements, investment account information, pay stubs and other necessary financial information
• The lender will connect with the broker to provide a price opinion based on the condition of the home, market value, maintenance costs, etc.
• The lender reviews the purchase agreement and real estate commissions and weighs them against the cost of repossessing the home to sell or auction
• If the lender finds the situation works in their favor, the short sale will proceed with the terms negotiated in the purchase and sale agreement.

Short Sale Mistakes to Avoid

• Don't low-ball your offer. Lenders are trying to minimize loss and have a good sense of property values so make your offer as tempting as you can while staying inside your profit guidelines
• Have a knowledgeable short sales professional on your side. Lenders are busy and do not have time to explain the process so make sure you know what you are doing, or find someone (like a real estate attorney or a broker with short sale experience) who does
• Don't assume each lenders short sale process is the same. Each lender has different documents, requirements and regulations so don't foul up by making assumptions
• The fewer loans on the property - the smoother the short sale process. Avoid complicating an already complex process by  having a good handle on what's owed on the home.

Why Short Sale Knowledge is Important for Brokers and Real Estate Agents

• You can recognize  the opportunity to sell a home and receive commission on a home that would otherwise be repossessed by the lender or auctioned
• To develop a favorable reputation among potential buyers (who stand to purchase a discounted home with a short sale) and among sellers (who will no longer go into foreclosure or declare bankruptcy)

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