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Understanding the short sale process


 

Atlantic station short sales

Buckhead Short sales

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Ovation Buckhead short sales

Paces 325 short sales

Paramount at Buckhead short sales

Realm Buckhead short sales

Stonegate on Lenox short sales

 
What is a "short sale"? 
 
A "short sale" is a special transaction, that has to be approved by your mortgage company, which allows you to sell your home for less than your mortgage debt. 
 
 
I am a certified distressed property expert REALTOR® experienced in “short sales”.  I will work with and your lender(s) to arrive at a settlement for your short sale, allowing you to sell your property and get on with your life.  My commission is paid by the bank for your short sale, so you won’t have any out-of-pocket expense.   Although my commssion is paid by the bank for selling your home as a short sale, I represent the seller in the transaction NOT the bank.  Not all agents have experience in negotiating a short sales and at such a critical time , you need an agent who has short sale experience and who can get the job done so your home doesn't get foreclosed on.
 
Contact Sian Sinclair today at (404) 903-5783 if you are interested in listing/selling your home/condo/townhome as a short sale or buy a short sale/pre-foreclosure or foreclosure in Buckhead. 
 
Alpharetta short sales 
Atlanta short sales
Brookhaven short sales
Buckhead short sales
Duluth short sales
Dunwoody short sales
Lawrenceville short sales
Marietta short sales
Sandy Springs short sale
Vinings short sales
 
 
Contact me now, don't let you home get foreclosed on.   Email Agent now! 
 
I specialize in short sales in the Atlanta metro area including; Ashford park, Buckhead, Brookhaven,Chamblee, Midtown, Virginia Highland, Sandy Springs, Dunwoody and Lawrenceville.   I also work in other areas outside the perimeter such as; Alpharetta, Marietta,Roswell and Smyrna.   If you are in need of a Realtor or Real Estate professional to sell you home as a short sale or just need to get some questions answered about a potential short sale, Call me today!  Sian Sinclair/Realtor (404) 903-5783Stop foreclosure now!! No equity! No Problem!
 

Schedule a FREE short sale consultation

Who qualifies for a Short Sale?
 
Before you decide to list your home as a short sale, consider the following to determine whether you may qualify for a short sale. If you cannot answer yes to all four requirements, you may not qualify for a short sale.
 
  • A.     Your home has decreased in value.
Recent comparable sales must substantiate that the home is worth less than the unpaid balance due the lender. This unpaid balance may include also be subjected to a pre-payment penalty which will be added to the outstanding balance.
 
  • B.     The Mortgage is in or will soon be in Default Status.
It used to be that lenders would not consider a short sale if the payments were current, but that is no longer the case. Realizing that other factors contribute to a potential default, many lenders will work with you and consider a short sale before you miss a payment.
 
  • C.    The Seller Has No Assets
The lender will probably want to see a copy of the seller's tax returns, and / or a financial statement, profit & loss statement in self employed and bank statements.
A lender may not grant a short sale if the lender discovers that seller has other assets and feel that the seller has the ability to pay the shorted difference. However, Sellers with assets may still be granted a short sale but could be required to pay back the shortfall.  For example, if the seller has cash in a savings account, owns other real estate, stocks, bonds or even IRA accounts, the lender will most likely determine that the seller has assets. However, the lender might discount the amount the seller is required to pay back.
 
  • D.    The Seller is experiencing some hardship.
The seller must submit hardship letter that explains why the seller can not pay the difference due upon sale (including why the seller has or will stop making the monthly payments).
 
What is a Hardship?
 
  • Reduced Income or Unemployment.
  • Relocation and can no longer afford to maintain two payments
  • Inability to work due to health reasons.
  • Separation or Divorce.
  • Medical Bills.
  • Business Failure.
  • Death of a Spouse.
  • Bankruptcy
  • Adjustment in mortgage payment or unforeseen increase in your monthly expenses.
  • Any other circumstance that cripples your ability to repay your mortgage.
 
These examples do NOT constitute a hardship are:
 
  • 1.     Bad purchase decisions. Blowing your paycheck on a home theater system with surround sound does not qualify as a hardship.
  • 2.     Unhappy with the neighbors.  Disliking your neighbors, their choice of paint colors or decorative lawn pieces will not qualify as a hardship.
  • 3.     Buying another home. The lender will not care if you have decided the home is no longer suitable for you or your family.
  • 4.     Pregnancy. Increasing the size of your family or starting a family is not considered a hardship.
  • 5.     Moving into an apartment. If you decide to move out of your home, that is a lifestyle decision and not a very good reason to abandon your home.
 
Short Sale Consequences
 
A short sale is dependent on the following:
 
a.  A buyer making an offer to purchase your home.
b. The lender accepting the buyer's offer as a short payoff
 
Even if you meet the other 4 criterias ( mentioned above) to qualify for a short sale and you don ot receive an offer, you will not qualify for a short sale. Also, If you do receive an offer that is rejected by the lender, a short sale will not take place.
 
Ø      Tax Consequences
 
If the lender agrees to the short sale, the lender may possess the right to issue you a 1099 for the shorted difference, due to a provision in the IRS code about debt forgiveness. Many situations are exempt from debt forgiveness, according to the Mortgage Forgiveness Debt Relief Act of 2007.
You should speak to a real estate lawyer and a tax accountant to determine the amount of short sale tax consequences, and whether you can afford to pay those taxes, if any.
 
Ø      Blemished Credit Report
 
A short sale will show up on your credit report sometimes as a settled account. It's a pre-foreclosure that has been redeemed. Short sales affect your credit rating. While the damage to your credit report may not seem as significantly bad as a foreclosure to you, creditors may not make the distinction. Experts say the drop in your FICO score is identical to a foreclosure reporting.
 

List your home as a short sale

 
*Always seek legal counsel and consult an accountant before attempting to pursue a short sale.  A real estate agent or Realtor cannot give you legal or tax advice.
 
 

 


Contacts


 
SIAN SINCLAIR
Email SIAN
 
Phone: 404-419-3500 x 5246
Cell: 678-310-7193
Fax: 404-424-9397
City: Atlanta
State: Georgia 30319
Country: United States
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