This page is designed as a resource to help Cobb County homeowners who are in financial distress concerning your mortgage. There is a much better alternative to foreclosure that will be easier on your credit, better for your family, and will allow you to recover faster. We specialize in Cobb County short sales in Marietta, Kennesaw, Acworth, and Smyrna. To learn more, call 678-388-1020.
What is a short sale?
A short sale is defined quite simply as this: When the loan on a home is more than the property's actual worth.
Short sales can sometimes be referred to as "pre-foreclosure." The main difference between the short sale and a foreclosed property has to do with ownership. On a foreclosure, the bank actually takes back and "owns" the property. On a short sale, the actual homeowner is selling the home and asking the bank for a certain amount of mortgage forgiveness.
In a down real estate market, a short sale is a great way for a home seller to avoid bank foreclosure. Depending on what you read, a foreclosure can have damaging implications for up to seven years. A short sale on the other hand, is less than half that period of time.
Please watch this short video, I wish I could have helped this man short sale his home and save his dignity. This doesn't have to be you. I can help.
You're Not Alone...1 out of every 8.5 Atlanta mortgage holders are in some sort of financial distress according to the Atlanta Business Chronicle. |
What is involved in pursuing a short sale?
Number one, you must contact a real estate professional that specializes in the short sale process. According to research, only 3 out of 10 homeowners facing foreclosure ever contact a licensed realtor. The skillset required is completely different than a typical home sale. A short sale specialist will take the time to sit down with you and explain your options as well as the short sale process.
Many real estate experts believe that short sales will drive 25 to 30 percent of home sales in 2010 and 2011. The Terry Burger
Who is eligible to short sale?
Homeowners facing foreclosure and/or deteriorating financial condition due to "life" factors or hardships such as job loss, health issues, and more.
What is required to get started?
A five to ten minute phone interview is all it takes to determine whether a short sale may be right for you. Your situation and information will be kept in the strictest of confidence. There is no shame in short selling your home. Many real estate experts feel that up to 30 percent of the Atlanta market will be short sales. If you would like to learn more, call Terry at 678-388-1020. Because of the volume of calls we receive, you may need to leave your name and number and we can schedule an interview.
Why would my bank do this?
A short sale offers tremendous financial advantages over foreclosure for both the seller and their mortgage company.The average foreclosure costs the bank anywhere from $58,000 to $62,000. A bank will usually make out better by short selling the home. When you choose a short sale over foreclosure, you can dramatically improve your financial recovery time. To learn more, call Terry at 678-388-1020.
Real estate commissions and other fees are paid for by the bank that holds the mortgage.
Why do buyers buy short sales?
A short sale can be a much better deal than a foreclosure property for many home buyers. First of all, there is typically more disclosure than a bank owned home. As in a normal real estate sale, the homeowner will usually fill out some type of sellers' property disclosure statement. This disclosure form becomes part of the real estate contract and gives buyers more history on the property.
The buyer can actually talk to the person that has lived in the house. Many times that can make a home buyer feel much more comfortable moving forward.
Short sale homes are commonly in better condition than a short sale property. Many homeowners that short sale don't allow the home to fall into a distressed condition that would cause major issues down the road for home buyers. While those situations still occur in a short sale situation, the frequency is reduced in a short sale.
Lastly, a short sale can usually be had for 15 to 25% below actual market value in some cases. In order for a short sale to be "worth it" to a home buyer, a discount of at least 10% off market value (retail price) should be reflected in the final sales price.
Will the bank stop foreclosure if the process has begun?
Banks do not want to own real estate. They are in the business of lending money and collecting interest off of the money they lend. With that in mind, most banks will indeed stop foreclosure if they feel like they can save money. According the Joint Economic Committee of Congress, the average foreclosure costs $77,935 while preventing a foreclosure runs $3,300.
In the end, each bank weighs the cost of foreclosure against the cost of short selling.The key ingredient is to work closely with your Short Sale Specialist Realtor and your bank to get the short sale negotiated prior to the home going to the courthouse steps.
Why Hire A Certified Short Sale Expert?
Nationally, 28% of short sales actually close. A Certified Short Sale Expert closes between 80 and 90 percent of short sales. The process is complex and takes knowledge that a "normal" real estate agent does not have. The Terry Burger