Experienced Oklahoma City Lawyer Helping Clients Complete Short Sales
No one wants to say goodbye to their home, but in some cases, a short sale is a way to resolve your financial problems. If you are considering this option, it’s important to seek legal representation from an experienced short sale attorney in Oklahoma City. Let the lawyers at Mitchell & Hammond guide you through the short sale process so you can take control of your finances.
What Is A Short Sale?
A short sale involves selling a home for less than the amount that the current owner owes on it. A short sale is only an option for homeowners who have missed a large number of mortgage payments.
Lenders may agree to a short sale if it is inevitable that the home will end up in foreclosure. Foreclosing on a home is an expensive and time-consuming process, so short sales can save lenders a lot of time and money.
How Does A Short Sale Work in Oklahoma City?
The homeowner must initiate the short sale process in Oklahoma, but the lender must agree to it. If the home is worth less than the amount that is owed on it, the lender may agree to a short sale.
Short sales are listed on the real estate market and made available to potential buyers in the community. During this stage in the process, potential buyers will deal directly with the homeowners and their agents rather than the lender.
Buyers who are interested in purchasing the home must negotiate with the homeowner first. If the homeowner accepts the offer, the buyer must then seek approval from the lender. The sale will not go through unless the lender has approved the terms of the offer.
Short sale transactions are similar to other real estate transactions with several exceptions. It typically takes much longer to close on a short sale because of the need for lender approval and the amount of paperwork involved. Furthermore, homes are sold “as is” in short sale transactions. Both lenders and homeowners are unlikely to invest money in the property, which means buyers must take the home as it is instead of requesting repairs.
The proceeds from the sale of the home will be accepted by the lender as payment in full on the mortgage.
Short Sales vs. Foreclosures: What’s the Difference?
If you are behind on mortgage payments, it’s important to understand the difference between a short sale and foreclosure. In a foreclosure, the lender takes ownership of the home after the homeowner fails to make a number of payments. The lender then sells the home in order to recover their losses. But in a short sale, the homeowner still owns the home at the time of the sale. The only time that ownership is transferred is when the house is sold. At this point, the ownership of the home will transfer to the new buyers, not the lender.
Both foreclosures and short sales can negatively impact a homeowner’s credit. However, it may be easier to secure new lines of credit if you have a short sale on your credit report as opposed to a foreclosure. This is because having a short sale on your record shows other lenders that you recognized that you were in financial trouble and immediately took action to resolve it.
The Benefits of Short Sales in Oklahoma
There are a number of benefits to a short sale, including:
- A short sale can help homeowners avoid the negative consequences of foreclosure.
- Compared to foreclosure, this option gives homeowners more control over the sale of their home.
- Homeowners can settle their mortgage debt for less than what they owe on it.
- Some homeowners are eligible for relocation assistance to ensure they can find another home quickly after the short sale transaction is complete.
Learn more about the short sale process—and whether or not it is the right option for you—by contacting the experienced attorneys at Mitchell & Hammond right away.
Schedule A Free Consultation With Our Short Sales Lawyer in Oklahoma City
If you are in danger of losing your home, contact the bankruptcy attorneys at Mitchell & Hammond as soon as possible. We have helped thousands of clients get their finances back on track after experiencing hardships. Tell us more about your financial struggles so we can determine if a short sale is the right option for you. To schedule a free consultation, call the short sale attorneys at Mitchell & Hammond at 405-216-0007 or submit your information via the form on this website.