Brooklyn Attorneys Help With Short Sales as A Bankruptcy Alternative
Alternatives available to homeowners in New York Brooklyn, Bronx, Manhattan, Staten Island and Long Island
When you fall behind in making your monthly mortgage payments, you are in financial trouble. Your inability to make timely payment could be due to job loss, unanticipated medical expenses to pay, alimony or child support obligations, or any number of valid reasons. While the reason you fell behind may not be your fault, it nevertheless is your problem and you need a solution.
Once solution is bankruptcy, and our law firm can help you if that is the best way for you to obtain debt relief. However, if the major source of your financial distress is your inability to make your monthly mortgage payments, a short sale of your home may be all the debt relief you need and our Brooklyn short sale attorney can help you achieve it.
What is a short sale?
A short sale occurs when a mortgage lender approves the sale of a home for a purchase price that is less than the outstanding mortgage balance plus costs of sale. The mortgage lender is motivated to approve short sales for a number of reasons, including:
- Mitigating its losses when the homeowner fails to make mortgage payments
- A short sale can be more cost effective for the lender than a foreclosure proceeding
- Federal incentives that encourage short sales instead of foreclosures
Staying afloat when your house is underwater
Underwater is a term that has come to mean that the fair market value of your home is less than your mortgage balance. Housing markets not only in New York, but also across the country have declined in recent years creating a national problem for many local homeowners. Does it make sense to continue to invest in your home by paying your monthly mortgage? For many the answer is no.
Short sale advantages
Benefits of a short sale to homeowners and lenders include:
- Significantly less negative effect on the homeowner’s credit report than a foreclosure.
- A lender does not have to maintain the property or find a buyer as it would if it foreclosed on the mortgage.
- If qualified under the Home Affordable Foreclosure Alternatives (HAFA) Program, homeowners may receive $3000 for relocation expenses.
- Part or all of the unpaid balance of the mortgage loan (the deficiency) may be forgiven so that the homeowner is no longer responsible for it
- Under the Mortgage Debt Relief Act of 2007, taxpayers are not required to pay income tax on the amount of forgiven debt resulting from a short sale. However, the Act is scheduled to expire at the end of 2012, so if not extended by Congress, homeowners should act quickly to take advantage of this benefit.
Let an experienced short sale lawyer get you the debt relief you need in Brooklyn, Bronx, Manhattan, Staten Island and Long Island.
If you live in the New York City area, contact the Law Office of Gregory Messer online or at 718-717-2368 to schedule a free initial consultation. Our office is located across the street from the U.S. District Bankruptcy Court in Brooklyn and is close to the Borough Hall and Court Street subway stations. We serve residents throughout Brooklyn, Bronx, Manhattan, Staten Island and Long Island.
To ensure every client receives the personal attention he or she deserves, we are an appointment-only law firm with flexible hours adjustable to fit your needs.