Real estate attorneys have learned an assortment of methods for navigating the often complex and unpredictable world of mortgages and real estate financials. A property is a big purchase, and when a series of unfortunate scenarios occur back to back, it can be an intense one. A foreclosure in Lawrence, KS is usually preferred over a short sale, but what are the reasons?
A short sale enforces a usually quick sale of a property that cleans everyone’s hands as quickly as possible, but in the process, the property mortgage borrowers get hit really hard with a number of negative results. Yes, they avoid credit claims on their report, but they get absolutely savaged by a deal where the top priority is “just getting it done”. Who wins in this case? The banks win splendidly, and the new homebuyers are getting an incredible deal at the expense of the original borrower.
Firstly, short sales often omit the home inspection, and the new buyer can potentially come after the original owners if something was not properly reported. Those that go through a short sale need to make sure they are completely cleaned of responsibility. Instead, in a foreclosure, the bank takes on ownership.
A short sale is not much different from a foreclosure, but there is one clear problem; a short sale is without a bankruptcy. Some borrowers can actually funnel their property into a bankruptcy and buffer against a lot of the negative results from a foreclosure, while a short sale leaves them hanging. If a borrower can be approved for a bankruptcy, it may be the better option and they are a lot more flexible compared to a short sale. A short sale usually entails this type of arrangement: what is the price? Who is paying cash? The bank approves, little negotiation and the original owner can be left upside down and owing the banks tens of thousands. Without the bankruptcy to back them up, the short sale has buried their chances of building wealth for a decade.
The foreclosure in Lawrence, KS is by no means ideal but at least it moves through a system that is a little more maintained. The banks are involved, and the client has the protection of Joewlaw.com.
