What are Shortfall Sales?
Shortfall sales, otherwise known as a mortgage shortfall, occurs when the amount your property is sold for does not cover the outstanding mortgage aswell as any other loans secured against it. This is a common repercussion of negative equity. Should your properties be worth less than its outstanding debts, you will in all likelihood be left responsible for the shortfall sales amount.
Forced Shortfall Sales
Should you be unable to secure a buyer in the timeframe given by the lender, the properties may fall to the LPA Receiver. It will be the onus of the LPA Receiver then to secure a buyer, at the behest of the bank. The LPA Receiver may sell the properties to whoever they like, at whatever price they see as appropriate in any matter which they see fitting. The end result is the property owner losing control of the property. Should the LPA Receiver secure a sale at a price below the outstanding debt on the property, the property owner will still be left responsible for any shortfall sales amount.
Once the property has been sold the lender will take what is owed to them as result of any shortfall sale. In the event of shortfall sales, you are also liable for any costs for solicitors or estate agents. Having done this, any overspill of money from sales will go towards any other charges held against the property. In many cases, there is not enough money to pay all debts. The difference is known as a mortgage shortfall and you may be liable for the amount accumulated from the shortfall sales.
Help for Shortfall Sales
If you are facing the prospect of shortfall sales, it is possible the original valuation of the property in question was never actually valid. Bloated valuations & rampant negative equity in particular locations has led to an influx of shortfall sales & mortgage shortfalls.
Immediate Bank Claims was created to address the imbalance perforating the banking industry. We can assist property owners facing shortfall sales & mortgage shortfalls. Through legal arm, we can challenge the validity of valuations & mortgages. We are also industry experts in lender negotiations. Indeed, we have helped hundred of property owners reduce or nullify their negative equity debt upon encountering shortfall sales. If you are liable for the amount of any shortfall sales, speak to us as soon as possible. We can drastically reduce or nullify the amount owed as a result of a shortfall sales.
The first call of action is to call Head Office so we may bring clarity to the situation. We will ask you to complete our formulated information collection forms which operate under strict confidentiality. Upon completion, Immediate Bank Claims can begin working alongside you to reduce the amount owed in the event of shortfall sales.
Shortfall Sales in the Press:
National DebtLine discuss shortfall sales.