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Short Sales

Irvine Short Sale Lawyer

Is your home mortgage underwater?

Santa Ana based data firm CoreLogic has reported that California has the largest number of homeowners whose mortgages are "underwater," which is to say that the property is worth less on the real estate market than the amount that the homeowner owes on the mortgage. This figure amounts to nearly one in three homes statewide, meaning that this state has the fifth highest percentage of upside-down mortgages in the country. If your mortgage is underwater, you are not alone. Knowing that millions of other California homeowners are in the same position that you are does not necessarily make the situation any more bearable. You still have to live your life with a constant struggle to come up with the money to make a monthly payment which is excessively high based on your home's former value, and it may take you years to build any equity in the property – if indeed you ever make it to that point before losing the home to foreclosure.

Short Sales for Upside-Down Mortgages in Irvine

You may feel like there is no way out: even if you are willing to sell the house, the fact that the property is worth less on the real estate market than the remaining balance on your mortgage means that you would not only obtain zero profit on the transaction, but you would also be left owing money for a home you no longer owe. You may be able to resolve this situation, however, by hiring an Irvine bankruptcy lawyer from Peter Rasla & Associates, P.L.C. to represent you in short sale negotiations with your mortgage lender. In a short sale, the bank consents to allow you to sell the property at the highest price possible, so that you can get out from under the burden of an unsustainable debt and make a fresh start in your life.

Will I have to pay the remainder of my home loan?

Agreeing to a short sale means that the bank will lose money. California is a "no-recourse" state, meaning that when a borrower defaults on a loan, the lender can foreclose on the collateral – in this case, your house – but cannot pursue any further legal action against the borrower to obtain payment for the deficiency, which is the remaining balance of the loan. For this reason, banks are typically opposed to approving short sale requests unless the borrower can prove that he or she is suffering from some type of economic hardship as a result of a job loss, a major medical event or other unforeseeable changes in circumstances.

Our Irvine short sale attorney can help you!

Your attorney can assist you with preparing the necessary documentation to prove the validity and merit of your request, as well as negotiating with the bank and coordinating with your real estate agent to carry out the transaction. A short sale is not a perfect solution – it means that you will lose the house and your credit score will suffer – but it may be the best way for you to avoid foreclosure or bankruptcy and to free yourself up from a mortgage that you simply cannot comfortably afford. Contact the firm now for a free case evaluation to discuss this option and to begin working on your case.