Short Sale

Orlando Short Sales
  • Are you unable to make your monthly mortgage payments?
  • Has your financial condition changed?
  • Are you trying to avoid a foreclosure on your credit report?

If you answered “Yes” to any of these questions, then a Short Sale may be right for you. A Short Sale is the process by which a homeowner sells their home at a purchase price less than the outstanding balance of their mortgage. Hence, the homeowner is “short” the difference between the purchase price of the home and the outstanding balance of the mortgage. All of the net proceeds from the sale of the home are paid to the lender at closing.

There are many pros and cons associated with a Short Sale. For example, a Short Sale may allow a homeowner to walk away from their property without having a foreclosure on their credit report. Conversely, a Short Sale may result in a deficiency against the homeowner post closing.

NeJame Law assists homeowners in the Short Sale process by:

  • Negotiating with the lender to accept an amount less than the outstanding balance of the mortgage and avoid foreclosure.
  • Negotiating with the lender to waive all deficiencies post Short Sale prior to concluding the Short Sale.
  • Educating the homeowner on the short sale process and explaining the legal and credit ramifications of a Short Sale.
  • Utilizing a qualified staff trained in Short Sale processing who understand the lender’s internal processes and procedures.
  • Review the contracts sent by the lenders to make sure the homeowner’s legal interests are adequately protected.

The whole short sale process can be both financially and emotionally draining as well as intimidating. Do not wait another day. We urge you to immediately contact a professional, Florida Bar licensed attorney who practices in the area of Short Sale Closings today as time is not your friend. Be strategic. Be prepared. Have a plan.

NeJame Law provides a holistic approach to our representation of homeowners involved in Short Sales. Our goal is to assist you through the Short Sale process and provide counsel for questions you may have during your transition.

Can a homeowner do a Short Sale if there are multiple liens on the property?

  • Yes

How will a Short Sale affect my credit score?

  • It depends on several factors and varies. The lender’s will report the Short Sale and the late payments to the credit reporting companies after the Short Sale is completed. The homeowner’s credit score between 50 to 200 points.

How long will a Short Sale remain on my credit report?

  • Typically, the Short Sale will show up on your credit report between 2 and 3 1/3 years post Short Sale.

In a Short Sale, does the lender pay the outstanding homeowner’s association dues?

  • “It depends on the lender and their internal policies. Typically, if the total amount due to the homeowner’s association is more than one (1) year’s worth of homeowner’s association dues, then it becomes more difficult to convince the lender to pay them.

In a Short Sale of a primary residence, is the deficiency automatically written off by the lender?

  • No. Florida is a “recourse state.” This means that the lender can file suit against the borrower post Short Sale for the deficiency (the difference between what the lender was paid and the outstanding balance of the loan).

Whose credit score gets affected by a Short Sale?

  • The credit of the individual(s) that executed the promissory note will be affected by the Short Sale. For example, if a husband signed the promissory note and the wife just signed the mortgage, then the husband’s credit score will be affected, not the wife.

Can a lender make me promise to pay the deficiency as a condition of the Short Sale?

  • Yes, a lender can require a borrower to pay the deficiency as a condition of the Short Sale by having the borrower execute a promissory note at the Short Sale closing or bringing some cash to closing. This is seen more with second and third lien holders than with first lien holders.

What is a HAFA Short Sale?

  • Home Affordable Foreclosure Alternative, also known as “HAFA”, is a Federal program designed to work with homeowners in the Short Sale of their properties. The HAFA Short Sale allows a homeowner to be approved upfront before listing the property. The lender sets the sales price and approves the Short Sale in advance.

Can a lender require a borrower to pay monies post Short Sale?

  • Yes. This is more common with second and third mortgage lien holders.

Contact our Short Sales Attorneys in Orlando, FL

If you are considering a short sale of a home in the Central Florida area, do yourself a favor and contact our short sale lawyer. The short sale process can be draining and may affect you and your finances in many different ways. Our short sale team will assist you through the whole Short Sale process and will be available to answer any questions you may have along the way. Call us today! We are available at 407-500-0000. You may also fill out the online form provided on this page or email us at and someone will contact you shortly.