Homeowners may want to think twice about a short sale due to possible legal action
Monday, February 22, 2010 11:38 PM
For homeowners falling behind on mortgage payments and in need of debt consolidation, a short sale of the home at a price lower than what they still owe on it may seem like the only viable option. However, before going through with a short sale, one should consider the potential consequences and take appropriate actions to prevent them from becoming a reality.
According to Frank Alexander, a member of the board of directors of the Consumer Credit Counseling Service of Greater Atlanta and a law professor at Emory University, homeowners who engage in short sales can often leave themselves open to a lawsuit by their mortgage company looking to recoup the remaining amount owed on the house.
"A borrower facing a foreclosure should assume that a post-foreclosure lawsuit is possible," said Alexander. "In addition, no homeowner should ever participate in a short sale without receiving a signed agreement clarifying that all outstanding debt has been forgiven. The same is true for all deed-in-lieu of foreclosure resolutions."
Homeowners can also leave themselves open for similar lawsuits if they simply decide to walk away from their mortgages and let the payments default. Alexander added that he felt homeowners should not risk leaving a home behind unless they are told they will not be on the hook for any of the remaining costs.
Recent News Articles
- Mortgage applications survey finds that fewer consumers willing to incur housing-related debt
- Government moves to broaden options for legitimate debt resolution options, stop scammers
- Revolving consumer credit falls, but overall numbers are up
- Report: Consumer attempts to reduce debt could be hampering economic recovery
- Report: Treasury Secretary warns world leaders that U.S. consumers look to reduce debt
Debt News Categories
About Debtmerica
Debtmerica is a leading debt settlement company that offers assistance to individuals and families who are experiencing financial difficulties and hardship.
We specialize in negotiated debt settlement to assist clients by reducing debt balances while providing an affordable monthly payment.
Our professional and knowledgeable staff has helped thousands of consumers get back on their feet financially.
Achievements
|
Debtmerica has had one vision since inception - to help Americans nationwide attain financial independence. At Debtmerica, we're proud of our achievements and honors. They represent our commitment to our vision and clients. |
|
|
|
|
A Secure & Trusted Site
|
Debtmerica is committed to providing a safe and secure site that you can trust. |
 |
|
 |