Short Sale Lawyer, Dade County: To Defend Yourself Against Second Lender

Short sale is a process in which a person sells his house for an amount that is far below the amount he owes to the lender

. The mortgage is usually taken out against the property he intends to sell. There may be instances when he has two mortgages in a short sale. When there are 2 mortgages in a short sale, the proceeds are used to pay off the first lender. The second lender will be getting his dues thereafter. However, it may be so that after paying off the first lender, there is no cash left to pay off the second mortgage. And even if there is, it may be very less as compared to what the debtor owes to the second lender.

If the second lender does not get what he is entitled to receive, he may react in different ways as follows-

* The second lender may be offered the cash that is left after paying off the first lender. If the amount is too less, he may either forgive the debt or ask debtor to shell out an extra amount. Say, the amount a person owes to the second lender is $50,000. The lender may ask him to pay $15,000. The lender is also aware that the borrower may not have that cash with him. Under such circumstances, the lender compels him to let the house get foreclosed if he doesn't have intentions to budge. However the lender doesn't get any cash immediately.

* The other option for the second mortgage lender is to release the lien only to get a deficiency claim filed. In case the second mortgage amount is not very high, the debtor may be spared but in some cases it is seen that the second lender will not spare him and try to retrieve the amount he owes. However, the lender also realizes that the chances of recovering the loan is low because if the borrower is unable to pay off, he either files bankruptcy or tries to negotiate for a certain percentage.

* There is another way the second lender can recover his dues. He can sell it to a collection agency. Once the account is sold to the collection agency, it is treated as an unsecured debt as there is no collateral to secure it. He may also urge the borrower to sell his assets for recovering the cash.

However, all these options could be exercised by the lender depending on the value of the property and the amount owed. If you think that your lender may refuse to budge and try to get your property foreclosed and you need help of a short sale lawyer, (Dade County), log onto www.miamiforeclosurelawyers.com. This reputed law firm of Dade County has highly experienced foreclosure and short sale lawyers who can guide you in the right direction.

by: Aliceshown

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