Short Sales & Deeds in Lieu of Foreclosure
Short Sales & Deeds in Lieu of Foreclosure
At Ferikes Bleynat & Cannon, we are dedicated to protecting your rights and the ownership of your home. Our foreclosure defense attorneys specialize in a range of services, from loan modifications to short sales and predatory lending litigation. We provide comprehensive legal support for all foreclosure-related issues, helping homeowners explore their options and pursue the best possible outcomes.
Short Sales
When a homeowner owes more on their mortgage than the property is worth on the current real estate market, they are said to have an “underwater mortgage.” In such situations, selling the home would not cover the remaining mortgage balance, leaving the homeowner with a significant financial burden. This is a common challenge for many homeowners, but fortunately, there is a solution—short sales.
In a short sale, your foreclosure defense attorney negotiates with the lender for permission to sell the property at the highest possible market price. The lender, in turn, agrees to waive the remaining mortgage deficiency. Although it is possible to carry out a short sale without legal representation, the process can be time-consuming and complicated, with unresponsive banks often causing delays. To maximize your chances of success, it’s crucial to take early action and seek experienced legal counsel.
While a short sale will negatively impact your credit score, it is generally less damaging than a foreclosure. Many lenders recognize that a homeowner who opts for a short sale is taking responsibility and seeking a resolution rather than allowing the home to go into foreclosure. Whenever possible, it is in your best interest to avoid foreclosure and its more severe consequences. If a short sale isn’t the right fit for your situation, there are other alternatives to explore.
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Deeds in Lieu of Foreclosure
A deed in lieu of foreclosure allows a homeowner to transfer ownership of their property directly to the lender, bypassing the formal foreclosure process. The lender typically sells the property at a loss, and unless there is a prior written agreement to forgive the remaining debt, the homeowner remains responsible for the balance. In this way, a deed in lieu of foreclosure functions similarly to a short sale.
If the lender agrees to forgive the remaining debt, it’s essential to understand the potential tax consequences. The forgiven debt is considered taxable income by the IRS if it exceeds $600, and the lender is required to report it. Homeowners considering a deed in lieu of foreclosure with debt forgiveness should consult legal counsel to fully understand the financial and tax implications. At Ferikes Bleynat & Cannon, our attorneys are well-versed in foreclosure law and can guide you through the process, ensuring that you make informed decisions.
Foreclosure Defense
The 2008 economic crisis left many homeowners across the country in financial distress, with home values plummeting by an average of 30%. Homeowners who had built equity in their properties found that investment eroded overnight, leaving them vulnerable to foreclosure. For those facing financial hardships, Ferikes Bleynat & Cannon offers creative and effective solutions to help abate foreclosure and mitigate losses.
We assist clients in exploring federal programs that may provide relief, and we work diligently to find alternatives to foreclosure. Our firm represents homeowners throughout Western North Carolina, helping them retain their homes or pursue other resolutions to financial crises. If you are a property owner facing foreclosure, we can help you navigate the complexities of foreclosure defense and loss mitigation, providing the legal support you need to protect your home.
Contact Ferikes Bleynat & Cannon
If you are a Western North Carolina homeowner facing foreclosure or financial difficulties, contact Ferikes Bleynat & Cannon today to explore your options. Our foreclosure defense attorneys are ready to provide the guidance and representation you need to protect your home and financial future.
