What Is A Short Sale In Georgia?

What Is A Short Sale In Georgia?

We’ve answered this before but we did want to update what a short sale is in Georgia just to be clear.  After all it’s been 4 years of short sales in Georgia.  The definition is still pretty much the same:

The short sale in real estate is where the lender/investor/bank lower’s their payoff (what is owed) to allow the sell of the home to a buyer at today’s (lower than what home was purchased for) market value.

 

What is a Short Sale?

What is a Short Sale

After 3+ years of short sales, one of the most common questions is what is a short sale. Afterall, if you haven’t been looking for a home or faced with selling your home, you might not be aware of what a short sale is.

So What is a Short Sale?

A Short Sale is basically where an owner of a property sells their property for what is less than is owed to the bank. The seller’s lender(s) essentially lower their payoff (the amount owed) to allow the short sale to happen.

Some keys that most people miss:

  • A short sale seller still OWNS the property (until someone takes it from them via foreclosure)
  • A short sale seller is netting the HIGHEST possible amount in the market thus SAVING property values vs FORECLOSURE
  • A short sale seller is taking action, not giving up
  • In every instance, a short sale is better than a foreclosure or bankruptcy

Loss Mitigation

Loss Mitigation

The loss mitigation department is the department of the bank that negotiates the short sale among other things  Each bank is different but for the most part, the loss mitigation department is separate from the foreclosure department or even the collections department.   These departments aren’t just separate from each other, they are often in different states, or in some cases different countries!