Short Sales

Short Sales--everyone has heard about them BUT BE CAREFUL. Short sales occur when the bank agrees to allow the sale of your house at less than the mortgage balance. For many years, if the bank agreed to a short sale, that was it. The homeowner would avoid foreclosure and the bank would take a hit on the mortgage and both would go away. However, today there is a disturbing new trend. Now, in the fi

ne print of the short sale agreement, the banks are agreeing to short sales, BUT then after the sale, suing the homeowner for the difference between the balance and the sale price. I would not recommend it. But if you do please read. First, make sure your lawyer gives you a written opinion (not verbal) as to whether the bank can go after you after the sale. Second, if the bank can go after you--don't do it. the only ones who profit is the buyer, realtor and the lawyer. You are stuck waiting to be sued.