Before you take any action in order to deal with the mortgage debt that you have, or the threat of foreclosure, it is important that you know all of your options. A short sale may seem like a good idea, but it is not the best course of action in every situation. If you have questions or concerns about a proposed short sale, it is best to consult with an experienced bankruptcy attorney first.
At the law firm of Sacks & Sacks, P.A., our Jacksonville, Florida, bankruptcy lawyers have extensive experience advising clients on short sale issues. Many individuals would benefit from filing for bankruptcy instead of selling their house in a short sale. However, our firm can review your entire situation and determine the best way in which to help you regain control of your finances and move forward with your life.
Issues With Short Sales
- While a foreclosure may allow you to stay in the home for a period of time, a short sale requires that occupants vacate the home immediately upon the sale. This will allow you less time to get organized and figure out what your next steps are going to be.
- If you enter into a short sale without being protected by a bankruptcy filing, your mortgage lender may not be willing to let you out of your debt (promissory note). The sale may be approved, but the lender can still require you to pay the balance of the debt. Bankruptcy can see this debt discharged and alleviate your responsibility to repay.
- If a lender agrees to release a debtor from debt obligations through a short sale on a property that was not the debtor’s primary residence, the debt from which the individual was released is considered taxable income. However, this is not the case if the debt is discharged in bankruptcy.
- Any defects, liens or encumbrances on the property at the time of the short sale are the responsibility of the debtor. These issues must be cured and the costs will be incurred by the debtor. If issues are found after the sale, the new buyer may have a claim against the debtor.
Contact a Jacksonville Short Sales Issues Lawyer
For advice and guidance on whether or not a short sale may be right for you, call 904-396-5557 or simply contact us online to schedule your free initial consultation with one of our Florida bankruptcy attorneys.