Short Sales, Long Game: How to Protect Yourself Legally

     When homeowners are underwater on their mortgage and out of options, a short sale can feel like the emergency exit door. But just because the bank agrees to take less than what's owed doesn’t mean it’s smooth sailing. From potential deficiency judgments to credit consequences and tax surprises, there’s more to it than signing away the deed. As real estate attorneys, we help you navigate the fine print, negotiate with lenders, and make sure your “short” sale doesn’t come with long-term regret.

    Short sales are complex negotiations that involve your mortgage lender, a potential buyer, and often a whole cast of supporting characters like junior lienholders, HOAs, or judgment creditors. If just one of them doesn’t approve the deal, the whole thing can fall apart. We step in early to identify these roadblocks and help resolve them—before you get too far down the road. Our goal is to make the process as clean and favorable for you as possible.

    We also address the aftermath. Depending on your lender, you could still be on the hook for the difference between what you owed and what the bank collected—unless your attorney negotiates a waiver of deficiency. And let’s not forget Uncle Sam—any forgiven debt might be considered taxable income. Bottom line: this is not a DIY situation. A legally sound short sale strategy can save you money, stress, and future headaches.

    Our team has negotiated hundreds of short sales and has the experience to anticipate hurdles before they become deal killers. Call our office or email us for a free consultation. 

Richards Law, PA

www.richardslawpa.com

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