Facing Foreclosure in Divorce?

One of the major problems for someone dealing with foreclosure is finding a Realtor® with foreclosure experience. Most Realtors® have little or no experience in dealing with short sales, said Ralph Nudi, a Kenosha, Wisc., Realtor®, who has handled about 100 short sales in the last two and a half years. 

“A short sale is absolutely the way to go if you’re facing foreclosure and you don’t have any equity in your property. It’s far better than letting the bank take your property...The best piece of advice I can tell anyone going through a foreclosure is: ‘Move quickly!’ Most people wait too long before finding a knowledgeable Realtor®. Then it’s too late for a short sale.”            

John Mc Connin, a San Diego, Calif., attorney who specializes in foreclosures, said if you’re contemplating a short sale, “…get the lender to release you  from your deficiency. If you can accomplish that it’s a good deal.”            

However, he adds, if the banker won’t agree to that then obtain an attorney. “A person facing foreclosure needs to consider all his options. Some lenders will let you off the loan, but won’t release you from the liability. Others will agree to a short sale, but will say nothing about your liability. That’s when you need to see a lawyer.           

“In California, for example, a short sale may not be your best option because of  the complexities of consumer protection. You shouldn’t begin the short sale process until you spoken to a lawyer,”  McConnin said.            

Vincent Bindi, a broker in Orange County Calif, has handled 65 short sales in the last several years.  “The best piece of advice I can give someone facing foreclosure is find a local real estate professional that has extensive experience in short sales. I emphasize ‘local’ because he will be the one that will be selling your home," he said.           

Like the others Realtors® interviewed, Bindi said,” A short sale is the best way to go nine times out of 10, assuming you can’t afford the mortgage payment any more and you have no equity in your home. If there’s equity in the home there are other options.”            

He added that it’s not easy to convince a bank it should give a mortgage holder the opportunity to take advantage of a short sale. “You have to present a case to the bank that your client is insolvent and can’t pay his mortgage. The person requesting a short sale can’t have major assets sitting somewhere else, like a $100,000 IRA or other real estate,” Bindi said.            
  

Don Moore is a veteran newspaper editor and reporter who spent more than 40 years working at newspapers around Florida. He recently retired from the Port Charlotte, Fla., Sun-Herald. He can be reached at donmoore39@gmail.com.