This is the million dollar question asked by homeowners that are looking to sell their property in today’s market. Many clients are visiting our offices with the notion of a short sale or loan modification. However, once we are able to run the property on the MLX and prepare a Comparative Market Analysis by square footage, the property may be worth far more than originally anticipated. This puts the seller in either a great position to sell, or in a terrible position with a second mortgage unable to short sale or modify or sell for a profit.
If there is no equity, second mortgages can still be settled for pennies on the dollar, thus creating equity. Then, a regular sale, not a short sale, can be had. A short sale requires that the property be worth LESS than the first mortgage balance. And the balance will be what the final judgment reveals after the foreclosure, if the property was foreclosed. Only an attorney can assess the true value and determine whether it is a short sale or not.
IF trying to modify, again the primary question is what is the property worth? The existing value of the property will be the single most important factor to determine whether qualify. If the property is not upside down, that is the mortgage balance is less than the fair market value, then the lender will typically not modify. The loan will most probably not fall into the Making Home Affordable Program. The homeowner is then found in a bind because they can not sell, they can not modify and they can not short sale. The only option left is to try and negotiate the balance with the lender.
At the Law Offices of Jacqueline A. Salcines, PA, we have a staff of attorneys, realtors and accountants, all knowledgeable in every aspect of the real estate field, to provide the most accurate and expert knowledge so that our clients can make an informed and proper decision with regard to their properties.
Call us today for a free consultation. To see what your property is worth and whether a short sale or loan modification is in your future.
Offices in Coral Gables Tel: 305 | 669 | 5280 Or email us at J.Salcines@Salcineslaw.com