Short Sales vs. Foreclosure Sales in Florida
After many years of decline, Foreclosures are on the rise again in the State of Florida. Floridians have difficulty making their monthly mortgage payments and must decide on the best course of action on whether to keep their home or walk away. One of the many options that a homeowner has is to enter into a short sale or enter into foreclosure.
Short Sales
A short sale is any sale of real estate that generates proceeds that are less than the amount owed on the property. A real estate short sale occurs when the lender and borrower decide that selling the property and absorbing a moderate loss is preferable to having the borrower default on the loan and the lender foreclosure on the property. A short sale is an alternative to foreclosure because it mitigates or lessens additional fees and costs to both the lender and the borrower.
Foreclosure Sales
A foreclosure is the legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making his or her monthly mortgage payments. The foreclosure process will adversely affect the borrower’s credit score and can follow the borrower for some time while attempting to obtain credit. As the foreclosure is always initiated by the Bank/lender, the Bank or lender is in control unless loss mitigation options are afforded.
Loss mitigation refers to a loan modification or possibly a reduction in the loan repayment. If the foreclosure process takes its entire course without a short sale or loss mitigation, a Final Judgment of Foreclosure will be entered against the borrower. The Final Judgment of Foreclosure includes the amounts due and owing to the Bank, plus attorneys’ fees and costs. Thereafter, the home will be sold at a public auction in an effort for the Bank to offset what is due to the Bank by the borrower on the Final Judgment of Foreclosure.
Are you in foreclosure? Do you need aggressive foreclosure defense? Seek help today at The Law Office of Ryan S. Shipp, PLLC. As former counsel for the banks, our West Palm Beach Foreclosure Defense Attorneys now use our knowledge and skills assisting homeowners in foreclosure defense. Call us today at 561.699.0399 or come by our office at 814 W. Lantana Rd. Suite 1, Lantana, Florida 33462 for a consultation.