In many cases when homeowners can’t pay their mortgage, lenders choose to foreclose on the home. However, there are other options, and most of the time, lenders prefer to use those other options before choosing foreclosure. One such option is a short sale. When a homeowner selects to go the short sale route it can be much easier than foreclosure, for everyone involved. However, there is a very important aspect to short sales that you need to be aware of before you go through with the agreement: that is a waiver of deficiency. Without this important aspect in place you could be left with tens of thousands of dollars remaining in debt even after the sale is final.
What Is a Waiver of Deficiency?
So how does a waiver of deficiency work? Whenever a home is sold through a short sale there is a deficiency, which is the amount the homeowner is short on paying off the entire mortgage. In most cases, that deficiency is somewhere between $50,000 and $100,000. It used too be that most lenders would not accept a short sale unless the borrower agreed to pay off the debt. That meant that even though the borrower would no longer have to worry about a monthly mortgage payment, he or she would still be left with a very large financial burden to bear. Fortunately, in recent years, many lenders have started to include a waiver of deficiency in all short sale agreements.
We Help You Secure a Waiver of Deficiency
However, there are still many short sales that do not automatically include a waiver of deficiency, which means you might need to fight to get one. That’s where the Law Office of John Little, PLLC, can help you. We fight to make sure that all of our clients who go through a short sale can obtain a waiver of deficiency. You don’t want to be left with $50,000 of debt or more, after you sell your home. For most people this would be a huge financial burden to overcome. That kind of debt would most likely affect you for many years and make it next to impossible to obtain another mortgage in the future. By working to help you obtain a waiver of deficiency, our law firm helps you avoid this kind of crippling debt. Call us today to learn how we can help you.
Contact Our Royal Oak Law Firm for Help
At The Office of John Little, PLLC, we know how to obtain a waiver of deficiency. Before you sign any sale agreement, it’s important to make sure that your lender has included some kind of language that states there is a waiver of deficiency. We can help you determine if that language is included in the sale agreement. If your lender has not offered a waiver of deficiency then we can help you fight for one. You do have several options and you do not have to sign any agreement if you are not satisfied with the terms. If you are considering, or are already in, the process of a short sale in Royal Oak, then please contact our office to make sure that you obtain a waiver of deficiency. Don’t end up with debilitating debt that will affect you for years to come. Call us today at 248-865-3455, or contact us online. We also serve Detroit, Bingham Farms, Southfield, West Bloomfield, Sterling Heights, Troy, Berkley and Redford.