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Real Estate Law

Real Estate Law:

A deed in lieu of foreclosure may not be appropriate for all properties. To be approved, your home will need to pass a close inspection. Excessive liens on the property will also complicate the process. And with the forgiveness of any deficiency balance, tax implications are possible.

A clean title is essential to real estate transactions, whether it involves a real estate purchase and sale, inheritance-related conveyance of title, or partition action. Our attorneys supply our extensive knowledge and experience to real estate transaction, ensuring we devote the attention that is necessary to identify and resolve title issues prior to transfer of title or deed. Our experience and know-how in addressing complex title issues is beneficial to residential and commercial real estate clients alike.

A deed in lieu of foreclosure is an alternative to foreclosure that may be an option for those borrowers who do not qualify for a short sale or who cannot fight a foreclosure on legal grounds. A deed in lieu of foreclosure allows you to avoid a foreclosure by voluntarily turning you over your deed to the property to your lender. In exchange, your mortgage debt is forgiven. You relinquish the property and walk away. No need to go through the foreclosure process, have a foreclosure listed on your credit report, or suffer the credit damage that will follow.

Federal, state, and local agencies have initiated intervention programs to help resolve the foreclosure crisis around the country. In a settlement conference, the two parties may make new arrangements such as modifying an existing loan’s interest rates, length, type, waive fees, or some other mutually agreed-upon alternative. During the settlement conference, your financial situation will be reviewed and evaluated. This valuation will include taking a look at your income, expenses and your current assets. Any settlement will be based on your ability to make your current loans or be adjusted to a new loan payment arrangement. Other factors involved may include the type of mortgage you have, how overdue your payments are, and other relevant facts. Solutions mediated may include forbearance agreement involving temporary reductions or suspension of required payments, repayment plans, short sales, or modifications of loan terms.

If you are facing a possible foreclosure, you may qualify for a short sale to avoid the negative consequences of a foreclosure. If you owe more on your home loan debt than the value of your home and do not have a second mortgage, you may qualify with your lender to sell your home for less than the mortgage amount due. Generally, in a short sale the lender will forgive the difference of what is owed. Even homeowners who are currently on time with their payments may be able to do a short sale if they have fallen on hard financial times and foresee a potential foreclosure in the future. Each case is different and will have to be negotiated on its own terms with the lender involved.

An easement is generally the right to use the real property of another without possessing or owning it. In other words, an easement is a grant of rights that allows the use of another’s property.

A short sale is the sale of real estate, where the owner owes more to the bank than the property is worth. Homeowners who are experiencing a financial hardship often turn to a pre-foreclosure sale to avoid foreclosure or bankruptcy. On the other end of the spectrum, many investors are anxious to buy almost foreclosure properties because it can be a bargain.

Credit scores will be hurt due to a short sale. However, many believe foreclosure hurts it more. Either way, when you go 30+ days behind on your on your mortgage payment, your bank has the right to report to all the credit bureau’s that you are 30 days behind on your payments. When a late payment is reported to the major credit bureaus it does affect your credit scores. After going through a short sale or a foreclosure, most properties have multiple 30, 60, 90+ day late payments reporting on their credit report. The shorter the period of missed or late payments the better, and with foreclosures taking an average of more than a year around the country you should have far fewer missed payments, and therefore fewer dings on your credit report, with a short sale.

A deed in lieu of foreclosure can offer several advantages to both the homeowner and the lender. The objective, for the homeowner, is to have the lender  waive any “deficiency” from the sale of the property. A deficiency is the amount left unpaid on the loan after the property sold for less than what is owed against it. In many situations, this is a distinct possibility; in others it is more challenging.