When you sell your home for less than the amount you owe on your mortgage, this is known as a short sale if to a third party, or a short payoff if made directly to, or submitted by, the borrower themself. Resolving a mortgage loan with either a short sale or short payoff allows you to avoid a deficiency judgment that the lender would be entitled to. In addition, a short payoff allows a borrower to remain in the property with debt that is below the current market value of the house – instead of owing more that it is worth.
Most lenders and servicers do not advertise that they will accept a short payoff. Most of the loss mitigation forms list only a deed in lieu of foreclosure, short sale or loan modification. Most lenders and their servicers will consider a short payoff but it has to be submitted a certain way. At James J. Quail & Associates, PC, we can submit an application for a short payoff on your behalf.
It is important to note that a Lender is the bank or entity that holds the right to the note and mortgage, while a servicer is an entity charged with servicing the loan, which includes loss mitigation options.
At James J. Quail & Associates, PC, we have worked with the following lenders regarding a short sale or short payoff:
- Bank of America
- Fifth Third
- Wells Fargo
- HSBC (which acts as trustee for other lenders, such as Wells Fargo)
James J. Quail & Associates, PC has processed short sales and/or short payoffs from the following servicers:
- Mr. Cooper (formerly Nationstar)
- Specialized Loan Servicing
- PHH Mortgage (and in which Ocwen has been merged into)
What Can A Short Sale/Short Payoff Attorney Do for Me?
Unlike a real estate agent or short sale broker, an experienced real estate and foreclosure attorney is more likely to get a short sale or short payoff approved. If the property is in foreclosure, this type of attorney can leverage mistakes the lender made, or deficiencies in the mortgage and foreclosure paperwork for a better price who can only help negotiate the sale, an experienced real estate attorney can get approvals better.
Letting go of your property can be a difficult emotional experience, but with the assistance of an experienced short sale attorney, you can navigate it with greater ease and confidence. It is not uncommon for short sale homes to have other judgments or liens on them, which is why you need a legal professional to help you remove them, so you can move forward.
Speak to a Knowledgeable Short Sale Attorney About Your Case Today!
If you are considering a short sale or short payoff, the experienced team at James J. Quail & Associates, P.C. can guide you through the process. Our team has been handling complex real estate cases since 2000 and will work diligently on your behalf to secure the results you need.
Call our law office today at (516) 246-2449 to request a free 30-minute consultation with a member of our legal team.