Atlanta Homeowners-Situation for a Short Sale
The Atlanta real estate market has been very slow for the past two years now. We seem to be seeing a few signs of movement in the market with buyers taking advantage of the $8,000 First Time Homebuyer Tax Credit, but this doesn’t help a lot of the sellers in the middle and higher price ranges.
Many sellers listen to the news and hear rumors they can just sell their home for any price with a “short sale” and walk away from their mortgage. They even think they can turn right around a buy a lower priced house that might have the same amenities. This is not true.
Four Criteria for Selling Short
- Market pricing must be less than the loan amount.
- The home owner must be financially insolvent.
- The homeowner must demonstrate hardship.
- The homeowner must be coorperative
And another to add to this list, the lender must approve the sale at the amount of the sale before sale can go through. If the lender does not approve, the home may be forced to go to foreclosure.
