Loan Modification and Short Sale
Mehlman Law Group can help property owners who are behind in their loan payments, or who are underwater owing more on their loans than their properties are worth, to understand the alternatives to foreclosure.
Another alternative to foreclosure is to short sale the property. A short sale is a real estate transaction where the seller’s lender(s) agree to allow the property owner to sell the property for less than the amount owed on the loans secured by the property. The consent of the seller’s lender(s) is necessary in a short sale because without the consent of the lender(s), there would not be enough money from the sale to pay off the lender(s) in full and to pay other costs of the sale. As a result, the lender’s lien(s) would remain on title, and the seller would be unable to transfer title to the buyer free of monetary liens. Properties that are worth less than the amount owed to the secured lender(s) are often referred to as being “underwater” or “distressed” properties. Short sales are typically handled by real estate brokers; however, they often get hung up or delayed in obtaining lender approval or release of deficiencies on the amount owed to the second or junior lien holders. They can be advantageous when compared with the alternative of foreclosure, because even though the short selling property owner will take a hit on his or her credit, the property may be able to qualify for a loan to purchase another property sooner after a short sale than a foreclosure. There is also an opportunity to negotiate a release of deficiency on recourse junior loans. Mehlman Law Group is experienced in negotiating with lenders to obtain approvals of short sales in order to avoid foreclosure and in obtaining releases from deficiency claims or recourse second loans.
To obtain legal assistance with loan modifications or short sale approvals and release of deficiencies, contact us at [email protected] or call us at 925-935-3575 to set up an appointment.
We serve the greater San Francisco Bay Area. Mehlman Law Group is centrally located in Walnut Creek, on the border with Concord, in Contra Costa County, California. Our office is easily accessible with ample free parking.
Our Walnut Creek Office
Mehlman Law Group