2010: Attorneys, Eileen Moskey and Gary Kevorkian presented a commercial loan closing seminar for loan officers at a local bank.

2009 Attorney Eileen Moskey joined the firm as Of Counsel. Eileen has 15 years of general practice experience concentrating in commercial and residential real-estate and banking transactions. Eileen lives in Granby with her husband and two children.

Looking ahead: In September 2010, Kevorkian & Associates, LLC will be entering the 30th year of business as a law firm in the center of Granby serving the legal needs of clients in Granby and the surrounding Farmington Valley and beyond.

Tips for Buyers and Sellers in a Short Sale What do you do when you have to sell your house in a market where your mortgage debt exceeds the fair market value of your house? More and more sellers are turning to short sales as a possible option. Short sales require at least two critical players: a buyer and mortgage lender(s) who will approve the sale. You need a buyer who is willing to enter into a purchase and sale agreement for a purchase price which is less than the amount needed to pay off all mortgages and liens on the house. If you are fortunate enough to locate such a buyer and the buyer signs a purchase and sale agreement, the next step is for you to notify your mortgage lender(s) and request a short sale.

Mortgage lenders generally require the following information before they will even consider approval: a listing agreement with your realtor, the signed purchase and sale agreement, the proposed settlement statement (HUD-1), a completed financial statement (on their pre-approved form), a hardship letter explaining why you need a short sale, proof of income, recent bank statements, and recent federal tax returns for the past two years. If the lender approves the short sale, then the lender will issue a short sale approval letter which will outline certain conditions that must be satisfied (for example, the closing must occur by a certain date, the buyer cannot sell the property within 60 or 90 days of the closing, etc.). (If the Seller has multiple mortgages on the property, the seller will have to pursue approval of the short sale from each of the mortgage lenders.) If you are the seller, you want to be sure that the lender(s) agree not to pursue you for the deficiency (i.e., the difference between the amount owed to each lender and the amount each lender agreed to accept). If you are the buyer, you want to be sure that all mortgages in favor of the seller and other monetary liens on the property will be released.

In a short sale, the purchase and sale agreement should contain a condition that the sale is contingent upon the approval by Seller’s mortgage holder(s). If you are the buyer, you should add a definitive deadline for Seller to obtain lender approval so that you are not waiting endlessly. This deadline could always be extended by mutual agreement of the parties. If the lender approval is not received by the deadline, then the buyer has the right to terminate the contract and request that the deposit be returned.