If you read my Homes of Grayson blog, you probably have guessed that one of my passions is to help out those that are in need of completing a short sale. Of course. this information applies to all Short Sales, not just those in Gwinnett County, Georgia.
Georgia home owners struggling to make mortgage payments are often turning to doing a short sale as a means of escaping their debt.
If you are not familiar with the term, a short sale is when a bank or mortgage lender agrees to discount a loan balance because of a financial hardship on the part of the borrower. The home owner sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds from the sale to the lender.
One of the most important considerations when pursuing a short sale of your Georgia home is to make sure that the debt has been canceled!
As a licensed Georgia Realtor that represents home owners in a short sale, I can tell you there is always a sense of great relief when a short sale approval comes from the bank. Often times it is months of waiting and the uncertainty can wear on anyone that has gone through the process. Short sales are anything but short!
For the past few years I have been successfully completing short sales over the Atlanta, Georgia East Metro Area. So far the success rate has been good for short sale approval.
All of my short sales are completed with the help of a local attorney who works with me during the short sale process. This relationship very good and clients have been the beneficiaries of our work.
One of the things I have been able to count on is the fact that the attorney has gotten a release of debt from the lender.
This point is crucial for you to understand because there are lots of Realtors out there who are representing sellers in short sales that do not know anything about debt removal.
What has been coming to light recently is that a number of lenders are selling unpaid mortgages to collection agencies which in some states have years to come after you for a collection of this unpaid debt. Some of these collection agencies have been able to win court judgments where they can collect through repayment plans and even garnish your wages if necessary!
Can you imagine hiring a Realtor to get a short sale approval for you only to find out years later that there was no release of your debt. I am sure you would not be a happy camper!!
These short sales where the debt has not been released is opening up opportunities for companies and investors that specialize in preying on people who did not know any better. This is big business and is known in Real Estate circles as “scratch and dent”.
There is some relief in sight for some folks under the Home Affordable Foreclosure Alternatives Program (HAFA) . This new short sale program aims to prevent banks that hold second-lien loans from pursuing collections from homeowners after the short sale.
Under this HAFA program sellers will receive notice that their service company has steered part of the sales proceeds to secondary lien holders in exchange for release and full removal of their liens. It is important to understand however, that this release would apply only to short sales done through the Home Affordable Foreclosure Alternatives program. Not all lenders will be participating in this program.
Above all else if you are doing a short sale make sure your representative gets the lender to sign off on a complete removal of debt on your property. This applies to all lien holders of the property.
If you have any questions please contact me: EARL@EARLPARK.NET OR call me: 770-377-5793