Atlanta Short Sale Specialist
To learn more about short sales and how we can help,
please complete the form below.
What is a Short Sale?
If you purchased or refinanced your home during the peak of the market, you may very well owe more on your mortgage than your home is worth. The bad news is that your options are limited: stay in the home until the market improves; go into foreclosure and destroy your credit for years to come; or negotiate a sale price based on the current market value with your lender in an effort to release you from your lien - in other words, a short sale. The good news is that you came to the right place. Hirsh Real Estate Specialists has successfully negotiated dozens of short sales for our clients, and we can certainly help you.
What are the benefits of a Short Sale?
The main benefit is that with lender approval, in the case of hardship, you are not obligated to repay a loan that is more than the value of your home. In 100% of our short sale transactions, we have convinced the mortgage holder to take the net proceeds of the sale as full satisfaction of your debt. 95% of the time this will mean that you will bring no money to closing. Your bank simply takes the loss and you both move on. We do not charge an extra fee to handle short sales, it's part of our standard buyer broker agreement and commission.
Should You Consider a Short Sale?
It may be your best option, but keep in mind that it can be time consuming and complicated. We can ease the burden by negotiating on your behalf with your bank to allow us to sell your home at current market value (which may be less than you owe). Simply complete the form below and our short sale specialist will call you to discuss your specific situation. If it makes sense for you, we will handle the entire process for you.
Atlanta Short Sale FAQ
You have a lot of questions about short sales, we have the answers. Feel free to call our office at 404-492-9000 or complete the form above to answer your specific questions. The most important and commonly asked questions are below:
What are the benefits of a short sale?
- Your negative equity will be forgiven
- All commissions and closing costs will be paid by your lender
- In some cases the lender will pay you up to $3000 to assist with moving expenses
- Your credit will be much less impacted than if you went through a foreclosure
- We will negotiate for your lender to waive all future rights to sue you or pursue a judgement for their loss, which they can do in a foreclosure
What about unpaid taxes and hoa fees?
We will negotiate for your mortgage company to pay unpaid taxes and HOA fees at closing.
Who will negotiate with the bank?
Hirsh Real Estate Specialists will negotiate with the bank on your behalf.
What are the drawbacks of a short sale?
A short sale can negatively impact your credit since you will not be paying the full debt as you originally agreed to. A short sale also requires time and patience. We do the hard work for you, but you will need to be involved as needed.
How will a short sale affect my credit? Short sale vs Foreclosure ?
A short sale is much more advantageous than a foreclosure for your credit. Instead of marking the debt as "unpaid", we will negotiate for your lender to report the debt to the credit agencies as "Paid in full as amended". This will likely result in a temporary drop in your credit score. We have had clients who were able to qualify for a new mortgage within 2 years of completing a short sale.
Can I purchase another home after a short sale?
There is a waiting period to purchase another home after a short sale, but the wait time varies based upon the circumstances of the short sale. The Mortgagee Letter 09-52 from the Department of Housing and Urban Development clearly outlines the specifics. We strongly encourage you to familiarize yourself with this document before you decide to move forward with a short sale.
Will I have to bring money to closing?
It's possible, but unlikely. It really depends on the final terms of the offer and the terms accepted by the bank. In 95% of our short sales, the seller has not brought money to the closing table.
Will I owe taxes on the forgiven debt?
You should always consult your CPA about your situation, but the Mortgage Forgiveness Debt Relief Act gives a special exemption through 2012 to many of those involved with a short sale. Instead of having your forgiven debt taxed as income, the IRS will allow up to $2 Million in debt forgiveness on your principal residence with no tax penalties.
What if I am behind on my payments?
If you are behind on your payments, then we will negotiate with your lender to pause the foreclosure process while we work out a short sale. You typically will not need to become current on your payments to complete a short sale.
What if I am not behind on my payments?
Not a problem, you do not need to be behind on your payments for a successful short sale. We have completed short sales where the seller had never fallen behind on payments.
What documents are required for short sale approval?
We will send you a short sale information kit which indicates the specific documentation needed to submit to the mortgage holder. For example, your short sale package will need to include paycheck stubs, tax returns, bank statements, letter of hardship, current financials, etc. Once we receive an offer on your property, that will also be submitted along with documentation supporting the offer.
Are you discrete with your clients' short sales?
We market a short sale property just as we would market any other property. The seller's identity is disclosed only when your signature is needed.
Which banks participate with short sales?
Major national banks have an established short sale program. If your mortgage is with a local or regional bank, we would work with the bank's asset manager or assigned contact. We have worked extensively with banks of all sizes.
What areas of Atlanta do you list short sales in?
We list and sell short sales in all of metro Atlanta. The following list of areas is where most of our business is, but just ask if you are not on the list:
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How long does the process take?
The process is lengthy. The collection and submission of documentation, marketing your property and negotiating an offer can take anywhere from 2 to 10 months or longer. An abundance of patience is required!
How much work will I have to do?
You will need to complete the requested documentation and any additional documentation required in a timely manner. Because your home is for sale, you will also need to be sure it's presentable anytime a potential buyer would like to view it!
Will I owe you a commission?
Your mortgage company will pay our commission at the time of the sale. We have completed many short sales and our sellers have never had to pay our commission.