Many homeowners feel strapped due to a second mortgage on their property, which may cause a property to become “upside down”, owing more on mortgage balances than the property is worth. “Often in the loss mitigation and loan modification industry I encounter homeowners and property owners that think that they can not do anything to negotiate their loan balance with their second mortgage company except to file for bankruptcy. This is not the case.” Jacqueline A. Salcines. Esq.
A second mortgage can easily be “wiped out” and settled for a short payoff. What this means is that the lender that holds the second mortgage accepts an amount, or percentage of their loan, that is less than the amount owed to them and calls it a day. Many times these percentages can be as little as 5% or 10%. Thereafter, the house can be kept with only the first mortgage on there, hopefully no longer upside down. Or a regular sale can take place, where the closing is no longer a short sale. The key ingredient however is hiring the right attorney to handle the negotiation for you. If you agree to send the lender something and it is all verbal, with none of the terms in writing, you may be just giving the money away. Too many times the lenders take the money as a down payment on the balance owed and do not issue a Satisfaction of Mortgage. This equates to the loan not actually being settled but rather written off as a bad debt or uncollectable. However, when you go to sell the property, the balance is revived and must be paid off.
It is imperative that a real estate attorney familiar with the negotiation process and paperwork involved fight in your corner. At The Law Offices of Jacqueline A. Salcines, PA, our attorney and staff work diligently not just to put an offer together but to look at the lender documents, closing documents, assignments, mortgages, etc. to see what leverage we can use to fight for the lowest settlement amounts possible. And, most importantly, make sure that the lender prepares and records a Satisfaction of Mortgage. This is a true Short Payoff.
Call us to discuss your options today!!!
JACQUELINE A. SALCINES, ESQ.
LAW OFFICES OF JACQUELINE A. SALCINES, PA.
706 S. DIXIE HIGHWAY
CORAL GABLES, FLORIDA 33146
TEL. 305 | 669 | 5280
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