Short Sales



It’s no secret that the economy is in tough times, and it’s also no secret that many homeowners are in very serious danger of losing their homes. Thankfully the North Queens area has managed, for the most part at least, to resist many short sales. However short sales are expected to increase, and there are still plenty of areas that are being hit.



A word to the wise for those planning on selling their home in a short sale – HIRE A COMPETENT REAL ESTATE ATTORNEY.



A short sale occurs when a homeowner can no longer afford to make their mortgage payments and the real estate is sold for less then the balance still owed to the bank on their loan. In the banks point of view it is advantageous to take a small loss on the property as opposed to taking the property into foreclosure. However the common misconception is the bank automatically relinquishes the homeowner from paying back the balance of the loan, and this is not always the case. In many cases the homeowner can receive a bill, even years and years after the house is sold, with the remaining balance owed to the bank.



What is commonly happening is banks are selling these accounts at a high discount to collection agencies. Now these collection agencies can take their time before deciding to collect, many times they even wait for people to build their net worth back up before claiming their money.



So please please please hire a trusted real estate attorney and make sure that your attorney works to get the bank to agree to release you from any further debt after the house is sold.