Miami Foreclosure Attorney: "Deed in Lieu" vs. "Short Sale"
http://bestmiamiforeclosureattorney.com
Miami Foreclosure Attorney: What's the Difference Between a "Deed in Lieu" and a "Short Sale?"
As this economy continues to plummet and home prices keep dropping, more and more families struggle to pay the mortgage on their homes. Some lenders are starting to offer a Deed in Lieu of Foreclosure ("Deed in Lieu") to homeowners. Beware; these offers are not always as good as they appear. In most cases, homeowners are better served by negotiating a Short Sale instead - especially when the Short Sale is handled properly by a Real Estate investing firm that is making a cash offer.
The results of a Deed in Lieu and a Short Sale may appear similar on the surface. They are both recorded similarly on your credit report. In most cases the reports will show a "Settled for Less than Full Amount" on your mortgage account. (Contact the three credit bureaus for their individual rules.) This notation can usually be removed after approximately three years. Both options are far superior to a Foreclosure on your record. Most people are able to take out a loan a few months after a Short Sale, which beats the seven or more years that a Foreclosure causes problems on your report.
This is where the similarities between a Deed in Lieu and a Short Sale end. When you start to investigate the differences, the Short Sale negotiated by a cash buyer is a far superior situation. The processes of each are completely different. In a Deed in Lieu situation, the homeowner submits a request and a contract to the bank. This paperwork then sits on the desk of a clerk. This poorly paid bank employee spends his day staring at hundreds, even thousands of files. It is his job to negotiate the terms of the contract. He has no vested interest in whether your file gets approved or not. In fact, approvals usually just mean more paperwork for him! Most Deed in Lieu contracts fail while the bank simultaneously forecloses on the home and puts the family out on the street.
On the other hand, a firm that buys homes with cash gets paid based on how well a Short Sale contract is negotiated. The representatives from these companies will contact the bank regularly so they can call you with updates. They will keep you well-informed and comfortable at every turn. They will also go to bat against the bank, at your behalf. These firms only make their money when you "win" the Short Sale and avoid a nasty foreclosure on your record.
These times are tough for many of us. If you need help easing the pain, do yourself a favor and find a firm looking to make a cash offer on your home.
*Article Source "What's the Difference Between a "Deed in Lieu" and a "Short Sale?" by Joshua Kennedy, from Coventry Investments
Don't delay. Hundreds, if not thousands of homes are saved from foreclosure everyday. Most of the cases that the lenders win are won by default. By the simple act of filing an answer a default can be avoided.
In cases where the Plaintiff does not obtain a default there are only two ways for the bank to prevail: summary judgment and trial.
You may still have time to save your home.
|
