Your medical bills and your own personal situation might mean that you need to move out of your home, making it more difficult for you to pay your mortgage. However, you may not want to sell your home if the financial result of the transaction means that you will owe the bank money. If you are dealing with a significant amount of medical debt, you may be allowed to sell your home for less than the amount of money that you owe the bank on your loan.
A short sale lawyer can represent you when dealing and negotiating with your lender. Consult Flushing attorney R. Ariel Poltielov now to discuss your options.
When you have a mortgage, you will typically be on the hook to the lender for the full amount of money you owe the bank. If you sell the house for less than you owe, you can be in financial difficulty because you will have a debt to the lender. In a short sale, your lender agrees to take less money than they are owed as full satisfaction of the loan.
The lender does not have to allow a short sale. They need to be persuaded to approve the sale since it may not always be in their financial interests. The lender first needs to be made to understand that you are experiencing financial hardship that is making it difficult for you to pay your mortgage each month.
Medical expenses and debt are prime examples of hardship that can cause you to struggle financially because you are being pursued by healthcare providers and their collection agents for money. You may not have enough money to pay the money you owe or the expenses associated with your mortgage.
A lender does not often permit borrowers to engage in a short sale with approval rates below 50 percent. However, it does not mean that it is impossible to persuade the lender to approve the short sale. The lender looks after their own interests first and foremost, and the decision often comes down to their own analysis of the finances.
However, besides the finances, there needs to be a good reason why the bank will take what can be a loss for them. The bank often does not want to see people seeking short sale approval who got themselves into trouble through poor financial decisions. Accordingly, lenders want to see that there is a good reason why you can no longer make your mortgage payments, and an unexpected medical debt load can qualify.
You will need to present your case for hardship to the lender to impress upon them the gravity of your financial situation. Your evidence can be a combination of a narrative statement about your financial situation and some of the bills that you are facing.
Your lender may want to see the following before they will allow a hardship exemption:
You will not have a final sales contract in place when you seek short sale approval from the bank. You will need to submit paperwork and wait to hear back from the lender.
There are some instances in which a bank may make a yes or no decision about whether to approve your short sale. It usually takes a considerable amount of time to get an answer from the bank. The bank can decide to grant your request or deny it entirely.
There may be some room to negotiate with the bank. For example, they can agree to forgive part of the money that you owe while still pursuing you for the balance. They may want to hear more about your circumstances and be willing to engage with you.
It may be difficult to communicate with the financial institution on your own. You may not know what to say and how to present your situation in terms that they may relate to and accept. There are certain topics that you should avoid addressing because they can undermine your own request. You want to go into enough detail to persuade the bank to grant your request, but not too much. A Flushing short sale attorney can present your case clearly and precisely.
Short sale attorneys deal with lenders as part of their daily work. While hiring a short sale lawyer may not guarantee that the bank will accept your offer of a short sale, it can significantly increase the chances. Although you may not have legal recourse when a bank denies your request, they are always more likely to listen when they are approached by an experienced short sale lawyer.
A short sale attorney can assemble the most persuasive package demonstrating that you are under financial duress and have a valid reason why you are having difficulty paying your mortgage. Your short sale lawyer can draft the letter to the bank that addresses your circumstances and why you are having difficulty paying your mortgage and need to sell your home.
If you are behind on your mortgage due to a hardship and you need to sell your home in a short sale, contacting a Flushing short sale lawyer is always best. Attorney R. Ariel Poltielov can help evaluate your options and communicate with your lender on your behalf.
You can schedule a free and confidential initial consultation with an attorney by visiting our website or by calling us today at (718) 520-0085. You should consider speaking with a short sale lawyer before you take any action.
