Friday, April 19, 2013

Short Sales and Foreclosure Victories

I don't usually like talking about short sales and foreclosures, but they have become a way of life in the Sarasota area.  I have successfully completed 3 short sales in the past month. 

One was difficult to get done as it had a 1st lien, 2nd lien, Condo fees owed and an IRS lien.  It took about 3 months to complete, but with the help of several others, the property will be closing on 4/23/2013.  What makes this particular short sale unique is the fact that the second was a credit union and we got them to waive the deficiency on the balance of the loan amount.  The trick was to get the first to put in writing that they would only give $6,000 to the second if the second waived their right to seek a judgment on the balance.  Since Credit Unions rarely waive their right to seek a deficiency when they do a lien release, I thought it a significant victory!!  My client was thrilled.  He completed his short sale without an additional tax burden and got the potential deficiencies waived.

The other interesting pre-foreclosure involved a client who had let their foreclosure drag on for nearly 3 years and thought they were in good hands with a local attorney. The ball had been dropped several times and the owner was now faced with a trial that was only 2 weeks away.  At this point in the foreclosure process very rarely is a short sale completed or a modification accomplished by the Defendant. I referred her to another attorney who believed that, while he may not be able to stop the foreclosure, he could get a ruling that favored the Defendant.  He argued that he could get the deficiency waived at this late stage of the game.  In a matter of a week, he had successfully subpoenaed several bank executives and the bank agreed to waive the deficiency.  In essence, because of his efforts, the Defendant was spared a potential deficiency of nearly $400,000.

People tend to just give up on these foreclosures thinking they will not get them done, BUT THEY CAN GET DONE!  It takes work, but as you can see from these two stories, they are possible.

If you are in a situation like this, or know someone who is, have them call me.  I can assist or refer them out to someone who can!!

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