Pros and Cons to Real Estate Short Sales in Michigan
When considering a short sale for your home there are pros and cons for you to consider. A short sale is completed when your property is sold at a reduced value to help avoid having the house go into foreclosure. In a short sale, your bank or mortgage holder will grant you permission to sell the property for less than what is owed on the mortgage. At Grewal Law, we offer short sale legal advice to help you determine if it is the best option for you and your family.
Our legal team includes Mick Grewal, a licensed real estate broker, who will assist you while working through a short sale.
Call us for your free consultation at (888) 211-5798 today.
We can help you determine if a short sale is the best option for you and can negotiate with your lender to help make the transaction happen.
Pros and Cons of a Short Sale
There are many pros and cons to a short sale for your home. As your Lansing real estate lawyers, we can help you determine the best option for you and your family.
First, we will review the pros to having a short sale in Michigan with you.
- The sale does not have as big of an impact on your credit and will not be reported to credit agencies. Only late payments made on the mortgage before the sale of your property may appear on your credit report.
- The process is shorter and less draining for you and your family compared to a foreclosure.
- The likelihood of your lender coming after you for a deficiency judgment is dramatically reduced. These judgments may be issued against someone if the sale price of a foreclosed home is not enough to pay off the balance of your mortgage. Typically, a deficiency judgment is only made after a foreclosure on a home compared to a short sale.
- There are also tax advantages of a short sale. Unlike other debt settlements, there are conditions where the debt cancellation from your mortgage will not be taxable income. Our expert real estate legal team will help you determine if any amount from your property’s short sale will be taxed or not.
In contrast, there are some disadvantages to trying to move forward with a short sale on your home.
- It can be difficult to get your banking institution or mortgage company to agree to the terms of a short sale. The negotiations could use up valuable time to provide other relief that would help you avoid a regular foreclosure. We can help you negotiate with lenders to help you achieve your short sale in Michigan.
- You will not receive any money after the sale of your property. Because of the terms of a short sale all of the money brought in by the sale will go to pay the lender.
Not Sure if a Short Sale is Right for Your Family?
Our expert legal team will give you the advice you need when deciding if a short sale is possible for your home. We will also handle the negotiations with your lender to allow you to move forward with this type of transaction.
Stop worrying about the threat of a foreclosure on your home, call our Lansing real estate lawyers at Grewal Law PLLC to help you decide if a short sale is the best option for you.