What is a short sale and how does it benefit you here in Atlanta?
If you’re thinking that question about yourself… great question!
In this article we’ll dive into that question so you as a Atlanta Georgia home owner can tell what your options are during foreclosure or just if your home mortgage is underwater.
In what ways can a short sale benefit you and how might you benefit from one?
When it comes to mortgages, short sales can be a smart way to avoid foreclosure (here’s a great definition of what foreclosure is in case you’re not sure what it is). Although short sales can be difficult to obtain in today’s market, they often prove to be a more straightforward way to resolve any debt left over from a loan.
During the torrent of foreclosures that rocked the Atlanta market a couple of years ago, short sales were extremely common in the marketplace. In recent years, however, as the number of foreclosures has decreased and the value of homes has increased, lenders have become less likely to offer a short sale as an alternative (although they are still completing a significant number of them!).
Here are a few reasons why you might want to consider a short sale on your Atlanta property. –
You are able to avoid foreclosure and the negative consequences of it.
The most significant advantage of a short sale is that you avoid losing your house to foreclosure. Your mortgage lender accepts less than the amount owed on your mortgage, allowing you to avoid incurring debt that you cannot afford to repay.
Foreclosure can result in a variety of financial difficulties, the most serious of which is the inability to obtain a new mortgage loan because a foreclosure remains on your credit report for up to seven years after it occurs.
Due to the negative impact on your credit score, it may be more difficult to find a rental property, and you may be required to declare the foreclosure on a rental application. Foreclosures can also endure a long time (up to 7 years, as previously indicated), causing you to have to wait years before you can even qualify for a new loan.
Concerns about credit
A foreclosure can have numerous consequences for your credit score, including bankruptcy. In some cases, traditional bank loan procedures such as purchasing a car and renting a house may be unavailable.
Your job could even be terminated if your employer places a high value on money-related tasks (most employers will not, but it has been done in the past). If you work with money at your job, it is possible that you will be fired if your boss believes that you are a risk to the company.
A short sale relieves the burden that has accrued as a result of the mortgage’s outstanding balance, allowing both the bank and the seller to go forward. A short sale is also less stressful on your credit score, which may allow a homeowner to recoup some of their losses in the longer term. Your credit record will only reflect a pre-foreclosure status, which will have a small impact on your credit rating as compared to a full-blown foreclosure.
Purchasing a New House
A foreclosure can persist for a lengthy period of time, making it impossible to obtain a mortgage for up to seven years after the event.
Short sales provide a bit more freedom for the seller, with fresh house applications being permitted only 2 years following the filing, depending on the bank in which the short sale was completed. It also increases the likelihood that a mortgage lender will approve your loan as opposed to if you had a full foreclosure, allowing you to get back into a home more quickly.
Once again, it all relies on the specific bank or lender with whom you’re dealing… In other words, if they’re having a hard time with you a year or two after a short sale… Look about and find another bank with whom to do business.
Typically, there are no fees associated with it.
One potential advantage of a short sale is that the bank is typically not required to charge any fees in connection with the transaction. The banks are just interested in getting the note off their books… Furthermore, if it can be demonstrated that your home is “underwater” (i.e., you owe more than your home is worth),… and you run the danger of walking away from your home… the bank may choose to work out a short sale instead of going through a time-consuming and expensive foreclosure process.
When you go through a foreclosure, your mortgage lender may impose on additional fees that only serve to exacerbate the situation.
When it comes to assisting with the foreclosure process with your bank, certain real estate advisors may charge you a fee… So check with them first before enlisting the services of a real estate agent or agency to assist you with this.
Depending on your situation, Georgia Fair Offer may be able to point you in the proper way in terms of how to offer yourself the best chance of getting a bank to approve a short sale on your Atlanta-area home…. So call us at (404) 855-0944 or send us an email at our contact page here to get in touch with us.
You May Be Required To Provide Certain Documents When Obtaining a Short Sale
You will be required to supply the bank with documentation demonstrating that you are unable to make your mortgage payments. If you are having difficulty, you should seek the advice of an experienced real estate attorney in your region who has previous experience dealing with this type of issue.
In the event that you are unsure who to speak with or where to look to determine whether or not a short sale is a viable choice for you… Please get in touch with us.
We will not charge you anything for meeting with you to discuss your case and provide you with information about your alternatives.
Furthermore, we may provide you with help and tips at no further charge or obligation.
Some of the time, we are able to perform the job for you or even purchase your home from you in order to relieve you of your mortgage obligation… Therefore, that may be a viable choice for you to consider.
If you are a home seller in Atlanta, we buy houses and deal with people just like you who are having difficulty selling their home the traditional manner… or for those who are unable (or do not wish to) go through the traditional listing process with an agent.
You can reach out to us at any moment to talk about your issue. We’re here to assist you!
Alternatively, if you would like to see what we can give you for your home, please click on the link below and complete the form on the following page. We’ll make you a no-obligation cash offer within 24 hours of receiving your information. At the very least, you’ll be aware of whether or not that is an option for you.