By Jeremy Carroll
C & G Staff Writer

Scott Galloway, a Huntington Woods attorney specializing in short sales of homes and foreclosure advice, has seen all sorts of clients from all walks of life.

“I’ve seen doctors, lawyers, engineers,” he said about people needing assistance. “Just because you missed one mortgage (payment), doesn’t mean you are going to lose your house. And just because you are going through a short sale or foreclosure, doesn’t suggest that you are a bad person.”

He said there are programs for everyone, but homeowners can’t sit around.

“(You) have to be proactive to take advantage of them,” Galloway said.

Galloway mostly deals with short sales — the sale of a home for less than what remains to be paid on the mortgage. He’ll negotiate to have the bank accept the lower amount.

“We typically represent people who have to move for whatever reason, but can’t because they owe more on their home than the market value,” he said. “We give them options, so they can move forward.”

In addition to a short sale, what they also sometimes deal with is a deed in lieu of foreclosure, which amounts to the homeowner simply turning the home over to the bank instead of selling it.

Galloway has been helping homeowners with short sales for 15 years, but never has business been as brisk as it has been in the last 18 months.

“At the end of 2007, right around Christmas, is when we started seeing this go off the charts,” he said.

The housing crisis and the glut of foreclosures have led to the ability to get short sales accomplished more frequently, Galloway said.

For a homeowner to attempt a short sale, he suggests first seeking out the advice of a professional to see if the situation would likely allow for a short sale. Short sales can become increasingly difficult if there are multiple mortgages on the home because each mortgage backer would have to agree to the short sale.

The home must be listed, and from the date of an offer to purchase, a short sale can take anywhere from as little as eight weeks to up to four or five months.

“It’s the complexity of the situation that determines how long it will take,” Galloway said.

While short sales can be accomplished without an attorney, he said, it’s often better to hire a professional used to dealing with the banks and knowing what can be negotiated.

“It’s a really frustrating process,” Galloway said. “You have to be persistent and you need the time to do it.”

For homeowners staring foreclosure in the face, the Michigan House of Representatives and the state Senate both recently passed a plan to give homeowners a 90-day window to seek help with their lender and a housing counselor. Counselors are available through the Michigan State Housing Development Authority and the U.S. Department of Housing and Urban Development.

“Giving folks the option to work with their lender to avoid foreclosure is long overdue,” said state Rep. Marie Donigan, D-Royal Oak, in a statement. “Our residents need a legislature that looks out for their best interests, and this plan does that. By working together, we will avert this foreclosure crisis and come out a better, stronger Michigan.”

For more information on Galloway’s practice and short sales, visit www.outfromundermyhouse.com or call (248) 545-2500.