Marcia Morgan-Payne


Understanding Federal Short Sale Rules
Video Information Library from from the National Association of Realtors
How to Avoid Foreclosure: 
Frequently Asked Questions About Short Sales in Georgia
Are you behind on your mortgage payments or in a situation where you cannot make your mortgage payments on time?
If your answer is "yes", your option to avoid foreclosure may be to consider a pre-foreclosure option, also known as a "short sale".  In a short sale, the mortgage holder agrees to accept a payoff that is less than what is actually owed on the load.  In many cases, you may be eligible to sell your home in a short sale without having to present any funds at the time of closing. 
How will a short sale affect my credit?

Typically, a short sale is a better option to foreclosure in regards to your credit rating.  For instance, a foreclosure may affect your credit for 5-7 years before you will be eligible for a loan, whereas a short sale in Georgia may only affect your credit for 2 or 3 years.  For this reason, may homeowners at risk of losing their home to foreclosure have opted to short sale their home.
What are some other advantages of a short sale in Georgia?

1.  Real estate fees in relationship to a short sale are typically paid by the lender, not the homeowner.
2.  Depending upon the investor that holds your loan, you may be eligibel for up to $3000 in moving expenses.
3.  You may be able to continue to occupy your home during the short sale process, which could last up to 6+ months.
4.  A short sale will have a less of a negative impact on your credit and your ability to recover financially than a foreclosure.
What are some disadvantages of a short sale in Georgia?

1.  The mortgage holder may decide to tax you for the deficiency (the difference between the amount of the short sale and what you actually owe).
2.  The mortgage holder may decide to try to come after you for the deficiency.  However, in a foreclosure situation, you could be liable for the entire amount of the loan, whereas a short sale can minimize your financial burden once the short sale is complete. Georgia recently introduced a new program for troubled homeowners called HAFA, a non-profit program that may help guarantee that the mortgage holder does not pursue the homeowner after closing for defiencies.
3.  Your mortgage holder may not process the short sale in Georgia until you have an offer to purchase from an eligible buyer, which could take anywhere from 45 to 180 days.  Many buyers may not care to wait through the short sale process.  To help avoid this lengthy waiting period, you may be eligible to get pre-approval for a short sale in Georgia via the HAFA program.
For more information on the HAFA program, visit their website by clicking here.  
For more information how to handle a short sale in your particular situation, click here to contact me via email or call Marcia Morgan-Payne at 404-316-5006.