Discharge of Debt Should be a Top Priority in the Short Sale Process

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According to RealtyTrac, 2011 foreclosures are expected to surpass 2010 by a massive margin; 4 million filings are expected this year and that number doesn't include the more than 5 million delinquent loans not yet in the initial stages of the foreclosure process. Many Americans facing the prospect of foreclosure are turning to a short sale as a better alternative. What many don't realize, however, is that completing a short sale may not fully cancel all of the debt associated with their property.

Especially for retirees and pre-retirees who don't have the timeframe or capacity to rebuild financially, it's really this discharge of debt that could be the pivotal issue impacting their financial future.

According to RealtyTrac, 2011 foreclosures are expected to surpass 2010 by a massive margin; 4 million filings are expected this year and that number doesn't include the more than 5 million delinquent loans not yet in the initial stages of the foreclosure process.

Many Americans facing the prospect of foreclosure are turning to a short sale as a better alternative. What many don't realize, however, is that completing a short sale may not fully cancel all of the debt associated with their property.

According to Raffi Tal, Executive Vice President, I Short Sale, Inc., "In many states, if someone loses his home, the lender can still go after that homeowner's other assets for any deficiency. Even people with second liens like HELOCs, delinquent homeowner association dues, delinquent property taxes face that prospect." Tal continued, "401k assets can be attached, IRAs can be attached; for lenders, it's all a matter of dollars and cents. This is the depth of an issue that nobody likes to talk about. At I Short Sale, negotiating a discharge of debt is a top priority and something we negotiate with lenders everyday."

For distressed homeowners looking at a short sale as a better alternative to foreclosure, it's most important that they look to work with an experienced, knowledgeable, successful short sale company that understands all aspects of lender negotiation, and that includes negotiating a discharge of debt.

While many distressed homeowners believe a loss of equity or not being able to pay their mortgage is their biggest problem, especially for retirees and pre-retirees who don't have the timeframe or capacity to rebuild financially, it's really this discharge of debt that could be the pivotal issue impacting their financial future.

I Short Sale, Inc. based in Woodland Hills, California, has facilitated short sales, loan modifications, forbearances, deeds in lieu and other loss mitigation solutions for property owners and lenders since 1991. For more information, visit http://www.ishortsale.com I Short Sale, Inc. is part of the Peak Corporate Network. As a leading authority in the real estate industry, the Peak Corporate Network entities provide a full array of comprehensive real estate services including residential and commercial brokerage services, mortgage financing, loan servicing, escrow services, foreclosure processing and 1031 Exchange, nationwide.

The Peak Corporate Network is not a business entity; the brand represents a group of related separate legal entities each providing its unique set of real estate services.

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Evon G. Rosen
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