I have people ask me this all the time - so here's a very straightforward explanation of the basic components & definition of a short sale and circumstances that qualify for a short sale.
Whatever you do.....you DO NOT HAVE TO LIQUIDATE YOUR 401K - the banks are NOT ALLOWED to come after your retirement funds!! I've had a few people ask me this in the last month as they've been unable to find work for the last few years & have depleted their life-savings trying to hold on to their homes in Atlanta.
Here are the basics:
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here's a more official definition:
- A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
- A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:
- Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.
If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.
Understanding your options now could mean all the difference in the world.
So, if anyone you know is experiencing these types of hardship (Distress sales represent nearly 40% of our Metro Atlanta market) – trust me, a neighbor, a friend, or family member is probably in need of this lifeline. Just tell them to “Call Mike For Results You’ll Like”.
www.LiveInAtlantaGA.com
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For more info about SHORT SALES and HOW TO AVOID FORECLOSURE visit: wwwAtlantaDignifiedSolutions.com
Michael Neville
404-310-8364
Mike@LiveInAtlantaGA.com
#1 Individual Agent Keller Williams Realty Atlanta Midtown
CDPE - Certified Distressed Property Expert
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