A Short Sale is when homeowners have to sell but cannot sell for the amount they owe on their mortgage. More and more homeowners are faced with being upside down in their mortgage because prices have continued to fall. Their choices if they can't sell and they can't pay, include Foreclosure, Deed in Lieu of Foreclosure, or Short Sale.
In a Foreclosure, the bank advertises for four weeks in the public notices of the local newspaper. The advertisement includes the name of the homeowner, their address and how much they borrowed. After four weeks, the home is then sold to the highest bidder on the courthouse steps on the first Tuesday, following the first Monday jof each month. Typically, if the seller owes more than the value, there will be no other bidders, so the mortgage company will bid the amount of the mortgage.
A Deed In Lieu of Foreclosure is where a homeowner signs the home over to the mortgage company prior to the foreclosure.
Banks and Mortgage Companies do not want to take homes through Foreclosure or Deed In Lieu, because of the costs involved in the legal process, holding costs and costs to sell. It has been proven that when a lender accepts a payoff that is less than the mortage, it is less expensive than Forelosure. Many lenders have specific departments to handle Short Sale negotiations.
Currently Short Sales show up on the credit report as late payments and the loan shows paid. According to Fannie Mae guidelines, if homeowners maintain great credit after the Short Sale and can qualify, they can buy using another Fannie Mae backed loan in 24 months.
A foreclosure stays on the credit report for 10 years as a foreclosure. Many employers check potential employees' credit before hiring. If the homeowner has a security clearance, some employers will terminate the employee who has a foreclosure.
A Certified Distressed Property Expert CDPE has received extensive training in the Short Sale process and helps people avoid foreclosure. If you are considering a Short Sale, be aware that most agents do not know how to navigate the process.
If you need help with a Short Sale or anything real estate, call me. I have been selling real estate since 1978 and have moved thousands of families.
leslie edwards 770.460.9448 direct RE/MAX Around Atlanta
Advanced real estate educaton and Professional Designations: CDPE Certified Distressed Property Expert, CRS Certified Residential Specialist, ABR Accredited Buyer Representative, EPro Internet Professional, GRI Graduate of the Realtors Institute. Let my experience work for you.
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