What Is A Short Sale?

Someone asked me yesterday "what is a short sale and how does it work"? At first I was a little shocked by the question I guess because 1 out of every 5 homes on the market is a short sale, I thought everyone knew by now. But the reality is, the people that don't know what a short sale is are the ones that need to know!

So as I'm explaining this to the potential client, her eyes light up like she's had an epiphany of some sort. She couldn't believe that the bank would accept less than what's owed on the house. It was as if the financial gods had answered her prayers......that was until I started explaining the ramifications of it.

Consult a tax attorney for a more difinitive answer, but most short sale deficiencies are not forgiven. This doesn't mean it's not the best solution for you. It just means that there will be some tax liabilities for the borrower involved in the bank's acceptance of the deal. In fact, in most cases except for HAFA, the lender will usually ask for a promissary note at closing. This means they want the borrower to pay back some or all of the deficiency usually at little or no interest over a set time period.

How do you know if a short sale is right for your situation? There are several questions that need to be answered and an experienced short sale agent, preferably a CDPE can help you with this.

If you're behind on your mortgage payments, don't wait around for the foreclosure notice! Call me and I'll be happy to assess your situation and help you as much as I can.

You can learn more about the process and find out if you qualify for short sale assistance by visiting http://www.gwinnettforeclosurealternative.com/.


www.SteveSellsGwinnett.com Steve Rider, CDPE Realtor with Keller Williams Lanier Partners in Braselton Georgia. Covering Barrow, Jackson, Gwinnett and Hall Counties in Northeast Georgia. If you're looking to purchase or sell a home in this area please contact me at 404 663 7063 or steverider1@gmail.com.