Atlanta Local Realtor

Local.  Dependable.  Professional.

Frequently Asked Questions

Q.  What’s a “short sale”?

A.  A “short sale” is when a house is listed for less than the seller owes—in other words, if they sell, they won’t have enough money to pay off the mortgage, like being “upside-down” on a loan.  This kind of listing is, sadly, becoming more common as banks and lenders try to help home-owners avoid foreclosure and even bankruptcy.
The owner’s mortgage lender must approve the sale, since they are going to be expected to write-off a considerable amount of money.  However, if you’re looking to buy, you may be able to purchase a property for as much as 20% less than its market value.  To get more information about short sales, contact me through this website.

If you are in the position of thinking about selling your house in a short sale, please be aware that your lender may be able to insist that you cash our your life insurance, your 401(k) plan, and your savings account in order to minimize their loss.

 

Q.  Is a short sale the same as foreclosure?

A.  No.  A foreclosure is when the mortgage lender decides to repossess the home and call in the loan, a short sale is the decision of the home owner and the lender together.  A short sale will likely hurt your credit a little bit for a little while, a foreclosure does more damage for longer.