Short Sale Legal Services In Massachusetts
Unfortunately, some homeowners find themselves with mortgage balances in excess of their home’s value. Homeowners confronted with a mortgage balance (or balances) exceeding the market value of their home and needing to sell do have options to avoid a costly foreclosure. Selling in the described situation is called a Short Sale and the attorneys at Mahoney Law Group have the real estate expertise to assist sellers through the confusing and time consuming short sale process.
What is a Short Sale?
A short sale transaction is a real estate sale where the lender (or lenders) holding a mortgage on a property agree to accept a reduced payoff of the loan amount owed in order to facilitate a property’s sale. The “short” is the amount of mortgage debt left unpaid when the sales price is deducted from the outstanding mortgage liens. This excess debt is forgiven by the lender, though sometimes through the short sale negotiation process, the lender will require that the seller sign a promissory note agreeing to repay the deficit amount over a period of time after the sale occurs. Short sales can also produce potential tax consequences attributed to the forgiven debt (contact your accountant for information on the tax ramifications of short sales).