Negotiating a Short Sale With Your Mortgage Lender
Short sales and deeds in lieu of foreclosure are two methods of avoiding foreclosure and the associated negative impact on your credit. Many people who are facing foreclosure proceedings begin by trying to negotiate a short sale or a deed in lieu of foreclosure. If they are unsuccessful, they may then try to file a bankruptcy petition — either to save their homes or walk away from the mortgage.
The timing of these interrelated actions is very important, and it's a good idea to have an attorney on your side to negotiate with your bank, review all legal agreements and give you strategic advice about how to proceed.
For more than 20 years, the Michigan law firm of The Shaw Group, P.C., has given practical and reasonably priced legal advice to southeastern Michigan residents in financial trouble. Our small and friendly law firm is led by attorney Edward Shaw, who works personally with each of our clients.
Contact us today to schedule a free initial consultation at one of our four Michigan offices: Novi, Ann Arbor, Livonia or Plymouth.
What Is a Short Sale?
A short sale is an agreement between a homeowner and a mortgage lender. With a short sale, the homeowner asks the bank to accept less than is owed on the mortgage as full repayment of the mortgage. The homeowner gives up ownership of the house and takes a slight hit on credit rating, but the hit is less serious than the black mark of foreclosure.
Usually, the homeowner works with a real estate broker to get a good estimate of the selling price and then negotiates with the bank to find out if the bank will accept that price as payment in full. A lawyer can help you negotiate with the bank and can help you communicate with the real estate broker.
What Is a Deed in Lieu of Foreclosure?
With a deed in lieu of foreclosure, the homeowner simply returns ownership of the house to the bank without the need for a foreclosure proceeding. The homeowner does not have to try to organize a short sale and avoids the credit hit that goes along with a foreclosure.
Get Help Now - Contact The Shaw Group Today
We have immediate appointments available if you have questions about short sales or deeds in lieu of foreclosure. Use our online contact form or call toll free at
