It is a widely understood and agreed upon fact in Atlanta real estate market now that short sale is the only way to get loan relief if the mortgage on a property is higher than its actual worth. Short sale helps avoid foreclosure and saves the borrower from financial disaster. Considering the psychological tensions and financial pressure on the homeowner and on the borrower, it is quite easy to predict the chances of mistakes in a short sale deal. So here I have done some homework for you to secure your short sale deal as a buyer or seller.
1. Understand the Complexities and Consequences
Some states allow lenders to send notice of mortgage completion to the borrower after completion of foreclosure process. This means that the case is not closed even after the short sale. Make sure that you live in a state where the case is closed after short sale. If you don’t live in one then the other technique is to process short sale deal through Home Shortsale Foreclosure Alternative Program. If the lender approves to process through HSFA, the borrower is released from a potential deficiency judgment. Consult with your nearest Atlanta GA real estate agents to understand the state wise laws.
As a lender, it is important to check the condition of property before allowing the borrower to sell it with short sale process. The condition of property could be worse than your imagination. Even if you live in a state which allows you to send notice of mortgage completion to the borrower, yet a renovation project worth $40,000 would be an expensive bet in Atlanta real estate.
2. Short Sale is not Short
Contrary to its name, short sale requires considerably long time to complete the process. Most of the short sale deals take 90 days to 120 days to complete the deal. Sometimes the lender takes long time to approve short sale. It is not always easy to convince the lender therefore hire real estate agents Atlanta to do the complicated job for you.
For lenders, it is difficult to wait for the money but make sure to properly inspect the condition of property before approving to sell it. Wait for good deal to come your way and save as much as possible.
3. Learnt the Art of Negotiation
Negotiation is the key to add or subtract numbers from standard value. This is one of the first tools that real estate agents Atlanta learn. The lenders are not willing to bear the loss which is why most of the first short sale applications are rejected. The borrowers need to learn the art of negotiating for convincing the lender for short sale approval. The lender would agree along with a condition that you need to pay some money to balance the loss. The amount is mostly less than 5% of the sale value which is perfectly acceptable in exchange of short sale approval.
On the other hand, the lenders need to learn the art of convincing the borrower to pay mortgage to avoid short sale loss.
With these three tips, you will easily secure a short sale deal. For real estate agents Atlanta, it is important to examine the condition of property before accepting the case.
I am also looking forward to see you in my upcoming workshop on Four Steps to Become a Millionaire Agent. The seminar is set to be held on January 23rd 2016.