What is a short sale? Atlanta "short sale" real estate agent
What is a "short sale"?
A short sale occurs when a lender agrees to accept a negotiated payoff that is less than the full loan amount. The lender's decision on what to accept is based on seller’s ability to pay and/or depreciation in property value (based on current market value).
What this means is that, you essentially sell the house for whatever you can get in the current market, and the lender agrees to accept the proceeds and not go after you for the deficit. The lender will sometimes ask the borrower to carry a personal note for a portion of the deficiency but not always.
A short sale often shows up as a "settlement" that indicates you paid less than you owed and can affect your credit scores but is known to have less effect on your credit as a foreclosure .
Up until recently you may also face an IRS bill on the unpaid debt, which is generally considered income. However, this law was changed sometime around last December, and the deficiency is no longer considered income. *There are some exceptions to this new law, so you may contact IRS for more information*. Be aware that the bank can still file a deficiency judgment against you for the difference.
If you are interested in listing your home as a short sale and need a Real Estate agent trained in negotiating short sales, contact me today! My commission is paid by the bank so you do not have any out of pocket expenses.
Buying a short sale property can also be a great way to save money on your home purchase. However, this process can take between 60-90 days and does not work well with buyers who need to close in less than 30 days, especially if short sale is not yet approved by lender.
Buying or Selling a short sale? Contact me today!
Sian Sinclair
REALTOR®
Keller Williams Realty-Peachtree Rd.
Ph: (404) 564-5246
www.buckheadtownhomes.com