REAL Exclusive Magazine

Top 10 Questions to Talk Over with Your Attorney Prior To The Pre-Foreclosure Decision

By Jim Soda

It is imperative that any homeowner seeking to determine if a short sale is in their best interest, be able to distinguish between their own interests and the interests of lenders, buyers, investors, and real estate-related professionals, and how these different interests may influence their decision. Following is a series of questions that will serve as an important precursor for homeowners to consider and discuss with their attorneys prior to their pre-foreclosure decision.
 
1. What are my options as a homeowner when my property is in or heading toward default? What is a better or more likely outcome for me and why?

        A short sale or a repayment plan?
        A short sale or a forbearance plan?
        A short sale or a loan modification?
        In the case of an FHA loan, a short sale or a partial claim?
        A short sale or a short sale/assumption agreement?
        A short sale or a deed-in-lieu of foreclosure?
        A short sale or a bankruptcy?

2. How do I know if my property and I may be considered for a short sale?

3. How would I initiate the short sale process?

4. Which process has a more adverse effect on my credit rating: short sale, foreclosure, bankruptcy, or deed-in-lieu of foreclosure?

5. What types of hardships would a lender generally consider favorable toward my appeal for short sale consideration?

6. On average, how long does a short sale process take?

7. What are the tax implications of a short sale?

8. If a lender agrees to the short sale option on my property, can the bank still proceed with a foreclosure?

9. Is there a real estate commission paid in a short sale? If so, who pays it?

10. When is a bankruptcy preferable to a short sale or to a foreclosure?

Jim Soda, leader of the Jim Soda Group at Prudential Lakewood Ranch Realty, is a consistent Top Producer and Member of Prudential’s Chairman’s Platinum Circle , achieving a level of the Top 1% of Agents nationwide. Soda earned Chairman’s Circle Platinum honors for ranking among the top one-percent of Prudential’s 65,000 agents nationwide in 2007 and 2008, with sales of $24 million. In 2009, Jim was awarded the prestigious Prudential Legend’s Award. The award goes to top producers who have won the Chairman’s Circle Award, which represents the top two percent of the Prudential Network, (five/10/15/20) times during their association with Prudential Real Estate and Relocation Services, Inc. Jim also is a member of the Top5 Real Estate Network. Soda may be reached at (941) 809.7759 or jimsoda@prudentialpalmsrealty.com.