Atlanta Short Sale Solutions for Homeowners

One option to avoiding foreclosure is short sale.

Understanding Short Sales: What You Need to Know

A short sale is when the home owner sells the house for current market value, even if it is less than what he or she owes to the lender, and then the lender forgives the difference. The only way this can work is if the lender approves the short sale.

This type of transaction is oftentimes used when a homeowner is facing foreclosure, and it's typically initiated by a lender who agrees to accept an amount of money that is less than what they are actually owed. In order for a short sale to be approved, the lender must receive written permission from the borrower and any other lien holders on the property. Once approved, the borrower can then negotiate with potential buyers in order to try and get an offer that will satisfy all parties involved. In some cases, the lender may even pick up part of closing costs or make other concessions to help facilitate the sale. Short sales can be a valuable tool for both homeowners and lenders in certain situations, as it can offer an alternate solution to foreclosure.

It is important to note that short sales often take longer than traditional real estate transactions, as they require additional paperwork and negotiations with multiple parties. Additionally, not all lenders are willing to consider a short sale, so it's important to do your research before entering into an agreement with any potential buyers. Additionally, even if a lender does agree to the terms of a short sale, the borrower is still responsible for any deficiency created by the difference in debt and proceeds.

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Pros and Cons of Short Sales: Weighing Your Options

There are both benefits and drawbacks when it comes to short sales. Take a look at the following pro/con list and talk to our foreclosure defense attorneys to explore the best options for your situation.

Key Benefits of Short Sales for Homeowners

• Eliminate your mortgage loan.
• You won't have foreclosure on your credit record.
• Your credit record probably won't suffer as much as if you went through bankruptcy or foreclosure.
• Receive relocation assistance in some cases — up to $3,000
• May be able to get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (up to 7 years)