Real Estate Frequently Asked Questions (FAQs)
- What is the difference between a foreclosure and a short sale?
- Do I need an attorney for a short sale?
- Can I modify my mortgage to avoid foreclosure or declaring bankruptcy?
- What are my options if the bank refuses to change the terms of the mortgage?
Q: What is the difference between a foreclosure and a short sale?
A: Both foreclosures and short sales typically result in your home ultimately being sold. A foreclosure is a legal procedure whereby the lender of your mortgage files a lawsuit against you in the Circuit Court in the county in which you reside. As with any other lawsuit, you can defend the foreclosure action and, if successful, you may be able to keep your home. A short sale, however, is when you sell your home for less than the amount of the outstanding loan and the mortgage lender agrees to accept this in lieu of filing a foreclosure action.
Q: Do I need an attorney for a short sale?
A: Finding a solution to your unpaid mortgage and dealing with your lender can be difficult and intimidating. An experienced attorney can help you decide which solution is best, and if a short sale is the best option, we can guide you through the process, assisting you with all of the necessary paperwork and the sale itself so that you can begin rebuilding your finances.
Q: Can I modify my mortgage to avoid foreclosure or declaring bankruptcy?
A: The simple answer is that it depends on your particular situation, how much you owe on your mortgage, how far behind you are on your mortgage payments, and who your lender is. Many times, lenders will be happy to negotiate a temporary or permanent modification to one or more of the terms of your mortgage to facilitate your ability to make payments.Â
Q: What are my options if the bank refuses to change the terms of the mortgage?
A: The lender might be more willing to accept a loan modification agreement, which tends to be a more temporary adjustment. In addition to mortgage modification, other types of loan modification include:
- Repayment plan: The debtor resumes making payments following the period of nonpayment. The payments under the repayment plan usually include part of the amount that is past due until the debtor becomes current on the payments. Â
- Reinstatement: Payments are made in lump sum amounts due on certain dates.
- Forbearance: Temporary suspension or reduction of payments, which is often combined with a reinstatement plan for a lump-sum payment following the period of forbearance.
Seek Experienced Legal Counsel
If you are unable to make your mortgage payments, have received a foreclosure notification, or are facing a short sale, it is critical that you seek the assistance of an experienced attorney as soon as possible. To schedule a consultation to discuss your case, contact the Law Offices of Daniel R. Brinley, PA today.
