Short sales in Alpharetta Ga and Johns Creek Ga are becoming more and more common.
Many buyers of shorts sales in Alpharetta, GA and Johns Creek, GA ask me why the seller has to approve the short sale price. A "short sale" happens when the lender who holds the note approves a sale at a price lower than what the seller owes on the loan. Buyers ask, "The seller isn't making a profit on the sale anyway, so as long as the lender agrees, it shouldn't make any difference to the seller what the home sells for, right?" WRONG!
First and foremost, unreasonably low short sale offers are not approved. The seller might be facing foreclosure, and doesn't have time to wait for months while unrealistic offers are processed by the lender. If they submit every low ball offer, they may lose the opportunity to find a real buyer with an offer that will be accepted, and forestall the upcoming foreclosure.
There are other concerns for the seller, too. A short sale is a way out for people whose home's market value has dropped below the amount they owe on the home. They may or may not be facing foreclosure, but they need to sell their house, for whatever reason. A short sale allows the seller to move on, but the seller could still face some very real consequences as a result of the short sale. The lender might demand a "deficiency judgement" as a condition of approving the short sale. The deficiency judgement allows the sale to close, but doesn't let the seller off the hook for the difference between the sale price and the amount owed on the loan. Obviously, for this reason alone, the seller will want the sale price to be as close as possible to the amount owed on the loan. The good news is, a deficiency judgment may sometimes be avoided. Consumers who need to do a short sale would do well to work with an agent who understands that when a lender demands a deficiency judgment, they may be able to negotiate to have it significantly reduced, or dismissed altogther.
Last, if the lender forgives the entire debt at the time of closing, there is a chance the seller may owe taxes on the amount forgiven. Recent laws provide that some sellers who sell a short sale are protected from tax liability on the amount forgiven on the first mortgage. This applies to sales that take place prior to the end of 2012. Not all types of loans are covered though, and consumers are advised to consult a tax professional on this question.
Do you need to do a short sale in Alpharetta, Ga or Johns Creek, Ga? Many short sales fail because the real estate agent handling the sale wasn't familiar with the rules and requirements to get a short sale done. You need an agent who knows how the process works, call me at 404-226-8484. With my training and experience in doing short sales in Alpharetta, Ga and Johns Creek, Ga, I can help.