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SHORT SALES IN MASSACHUSETTS
All of us know that foreclosures have become commonplace throughout the state of Massachusetts. Massachusetts real estate property owners have been hit hard. During these difficult financial times, you probably have heard, the term "short sale" used often. Short sales are extremely important because, when done properly, they have the potential of allowing a property owner to avoid bankruptcy and mortgage foreclosure, even if the property owner owes more to the bank or lender than the property is presently worth. The purpose of this website is to provide some basic information about short sales and let you know we can help.. For specific information about your situation, please contact our Real Estate Law Office and speak to an Experienced Massachusetts Short Sales Attorney Joseph Grimaldi to set up a Free Personal Consultation.
WHAT IS A SHORT SALE?
A short sale is the sale of real estate where the lender agrees to accept less than the amount owed on the mortgage as part of an agreed upon sale, instead of completing a foreclosure action of the property. For example, if a property owner owes $300,000.00 to the bank or lender but can only sell the house for $200,000.00, a short sale would allow the owner to sell the property, pay all of his/her closing costs and the bank would consider the mortgage paid in full.
WHEN WILL A BANK OR LENDER APPROVE A SHORT SALE IN MASSACHUSETTS
Although every bank or lender has its own rules and procedures they will usually approve a short sale request, if all of the following conditions are met:
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The price requested by the owner for the short sale must be fair and equitable and represent the true market value of the property. The lender will verify the market value by obtaining its own appraisal of the property. In other words, although most lenders do not want to foreclose a homeowner's property, they also try to protect themselves as much as possible and will not take substantially less than the property is worth.
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The current homeowner must not have the financial capability to pay the balance of the mortgage. The mere fact that a property owner is behind in his/her mortgage payments and that the property value is worth less than the mortgage owed, is not sufficient for a lender to agree to a short sale. The lender will need documented proof that the owner does not have the financial ability to pay the shortfall. If an owner does in fact have the means to pay the shortfall, the short sale most likely will not be approved. A financial affidavit, supporting financial details such as tax returns and bank statements will be required.
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An executed real estate contract for sale must show a buyer ready to purchase the property.
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All of the proceeds from the short sale can go to the lender.. If the owner wants to be able to sell the house without paying the lender in full, then the lender will not allow the buyer to receive any proceeds at closing.
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Prepared Closing Statement. The lender will want to see exactly how much it will net from the proposed short sale before it agrees to the short sale request. Our experienced Massachusetts Short Sale Attorney will prepare this closing statement and include it in the package being sent on your behalf to the lender. The lender will want to see that all of the closing costs are reasonable and that nobody is getting any funds that could be going toward the mortgage.
WHAT ARE THE BENEFITS OF A MASSACHUSETT SHORT SALE ?
Some of the benefits of a properly performed short sale in Massachusetts:
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Avoiding foreclosure . The negative effect on your credit and other negative consequences of foreclosure may be avoided by the successful negotiation of a short sale by an experienced Massachusetts Real Estate Attorney.
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Avoiding bankruptcy. Even when a homeowner is behind in mortgage payments and owes the lender more than a house is worth, a successful short sale in Massachusetts could allow you to avoid filing for bankruptcy.
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Eliminating the balance of any mortgage and home equity line of credit that you owe to the lender
DOES A HOMEOWNER REALLY NEED AN EXPERIENCED REAL ESTATE ATTORNEY TO ASSIST WITH A SHORT SALE?
Using an experienced Massachusetts Real Estate Attorney with experience in the Massachusetts short sale process is Vital. If you are behind in your mortgage payments and in danger of losing your home, you need to get the best professional legal advice possible. Any homeowner who has tried contacting the lender themselves to work out a payment plan or to request a short sale knows that this is not always practical and is extremely difficult. The lender can take advantage of you if you do not know your legal and financial rights.. Consider using a local Massachusetts Short Sale lawyer you trust, instead of phony counselors and short sale "specialists" who will take money upfront from you or powers of attorney in exchange for nothing that benefits you. If an investor or lender tells you not to waste money on your own Massachusetts real estate attorney, you should not use that person.
HOW CAN THE LAW OFFICES OF JOSEPH GRIMALDI HELP
The Law Offices of Joseph Grimaldi , is uniquely qualified to represent you in connection with your short sale. Attorney Joseph Grimaldi has many years of experience practicing real estate law in Massachusetts. Most of his legal experience has been representing individuals in real estate matters and real estate related litigation, including foreclosures. His experience as both a closing attorney and a litigator makes him and his firm uniquely qualified in this market to perform the following services for individuals seeking assistance with a Massachusetts short sale: Attorney Grimaldi can be reached personally by calling him at:
508-587-6100 or by email at: Joe@Massshortsalelawyers.com
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