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If a house in forclosure can be sold for enough to cover the entire mortgage and fees owed to bank, what steps need to be taken?

Pompano Beach, FL |

House is a homestead in Florida. Lis Pendens and notice to accelerate the mortgage have been issued by the bank. Owner not interested in modification or short sale or any option that requires providing bank with lengthy applications with owner's personal information. Is it possible to sell, not as a short-sale?

Attorney Answers 3


  1. Yes, it is possible to sell the house as long as the sale price is enough to cover all obligations. For example, if you have a home with a first mortgage of $120,000, a second mortgage of $20,000, HOA lien of $2,400 and you try to sell the house, you have to get enough to cover all of the obligations, in this case $142,400, plus any broker fees and closing expenses. The lender generally requires that you provide the financial information so that they can decide if you are in a financial hardship that warrants a reduction in the amount that you are required to pay for satisfaction of the mortgage. If the house in my example is only worth $90,000, I don't see how a conventional sale is possible. I hope this answered your question.

    I provide a free 15 minute telephone consult for security deposit claims and eviction defense. No attorney-client relationship is created by answering questions in this public forum. If you wish to create an attorney-client relationship, you must contact me directly and sign a representation agreement. Answers are provided based on general ideas and an answer specific to your situation would require a review of all documents.


  2. One other possibility that you may have not considered is reinstatement, which is an option under the terms of most mortgages. When you ask for a reinstatement quote your bank must provide you with a detailed list of all expenses to be paid by a certain date. I hope this helps.


  3. Yes most definitely. You have every right to sell your property.

    A short sale by definition means that the house value is less than that owed on the mortgage. Based on your question, that is not the case, and so there is no possibility of a short sale.

    Go right ahead and get your property under contract as quickly as is feasible, since the debt on the mortgage is accruing with every passing day. Your attorney will need to obtain a payoff quote so that the closing agent can pay what is due on the loan at closing. When loans are in foreclosure, this can be problematic, since the foreclosure law firms are so dysfunctional, however it is necessary. We have had people come to us for whom we needed to obtain court intervention just to get them a valid payoff or reinstatement quote because the borrowerx' requests were ignored, while the balance continued to increase.

    We have a Pompano Beach office. Please feel free to contact us at 954-943-8444.

    Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.

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