Are you facing a foreclosure and owe more on your home than it is worth? This can make it virtually impossible to sell it on the open market. What's worse, you can be held personally liable for the difference in value of your home versus how much you owe after a foreclosure. This is called a deficiency judgement. But there is hope. We can help you devise an exit strategy that can get you out from underneath the debt and ensure that a deficiency judgement doesn't follow. This can be achieved through:
SHORT SALE: A short sale is when the lender/servicer agrees to accept less than what is owed to satisfy the debt in exchange for a sale of the property. This agreement allows you and your family the opportunity to avoid having a foreclosure on your credit history as well as wiping away any deficiency judgment that you were facing.
DEED IN LIEU: A deed in lieu of foreclosure is basically exactly what it sounds like. You give the deed to the bank and the bank doesn't proceed with the foreclose. No judgement is entered against you. It is sort of like surrendering to the bank in order to immediately end your obligations. In return, the bank agrees to end the litigation and deem the debt satisfied.
WAIVER OF DEFECIENCY: If you decide to consent to a judgement in order to settle your case, you may still be able to receive a waiver of any potential deficiency judgement. This can be negotiated for by your attorney in settlement discussions.
WHAT ELSE CAN BE NEGOTIATED IN A FORECLOSURE SETTLEMENT?
CASH FOR KEYS: Your attorney may also be able to negotiate with your lender/servicer for the payment of moving expenses, commonly referred to as cash for keys. Under this scenario, in exchange for a consent to judgment, the bank will offer the homeowner a payment when the house is vacated, in good condition, by a certain date.
EXTENDED SALE DATE: An extended sale date is also something that can be negotiated. An extended sale date is when the lender/servicer allows the homeowners to remain in the home for several months even after a judgement is entered against them. This can be a useful tool to eliminate some of the stress of moving and provide the homeowner enough time to get affairs in order.
Deciding what to do when you are behind on your monthly payments and can no longer meet your financial obligations often requires the help of a legal professional. Our office has many years of experience assisting people in debt, and can explain all of your foreclosure and debt relief alternatives. Every situation is unique and should be thoroughly reviewed and all your options explored before any final decisions are made. Our firm offers a free consultation where you can receive legal advice regarding your situation. Contact the Holland Law Group for legal counsel and representation if you are in financial trouble and behind on your mortgage.