Sarasota Foreclosures - Bankers Force Homeowners Into Bankruptcy

Posted: Sep 04, 2010 |
Sarasota foreclosures leave homeowners thinking the worst is loss of a home. Unfortunately, many homeowners lose their homes. Then, they face ruthless debt collectors who legally chase them for up to 20 years in Florida.

Please don't walk away, thinking it's all over with foreclosure.

Please don't celebrate a short sale approval until you confirm full payoff & satisfaction.

How do you know your bank-approved short sale is letting you walk away? You absolutely must allow an informed foreclosure prevention attorney to advise you. Your real estate agent is not an attorney and should not attempt to intrepret any paperwork issued by your mortgage banker.

Reality is, many banks are issuing lien release short sale approvals only. They are reserving the right to pursue collections after the house sells.

Tracey & Tim, Sarasota homeowners, recently discovered their bank-approved short sale did not release them from a whopping $130,500 deficiency. Turns out, they're on the hook for the deficiency. According to the attorney they now are forced to hire, the only alternative is to file bankruptcy. Tracey & Tim thought they finally had put a horrible experience behind them once they sold their home short.

They were mistaken.

Losing their home is not bad enough. Now they have to file for bankruptcy protection to start over & get debt collectors out of their lives. It's too late, but they should've hired an attorney to confirm

Bottom line: beware banks approving short sales with LIEN RELEASE and not full payoff & satisfaction approvals. Please do not rely on a real estate agent's intepretation of the approval letter. A lien release, by the way, will allow you to sell the house (and that's good). However, you want the DEBT OWNER (bank) to agree clearly in writing the short sale provides full payoff & satisfaction of debt. You do not want the bank to go away and never hassle you for deficiency.

Sarasota foreclosures, without question, demand you consult with an informed tax professional and real estate attorney. PLEASE don't make the mistake Tracey & Tim made by not consulting with a real estate attorney who is very familiar with short sales. Even if you don't have the money, find an informed real estate attorney in your area to advise you before signing off. Resist the urge to sign just to make the immediate headache go away.

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