Foreclosure and Short Sale Frequently Asked QuestionsDeed in Lieu of ForeclosureQ: What is a deed in lieu of foreclosure? A: Basically, the debtor turns the title (deed) over to the lender and walks away from the property. Since Georgia is a non-judicial foreclosure state, this is not an option for most debtors. Q: Can you do a deed in lieu of foreclosure without a short sale? A: Yes. Deed in Lieu and short sale have nothing to do with each other. Q: Can a Realtor help with a deed in lieu of foreclosure? A: Yes. We can provide guidance, but this is a matter between you and your lender. Q: Can foreclosure be better than a deed in lieu? A: If you are referring to the impact on your credit, then no. Q: How likely is a deed in lieu of foreclosure in Georgia? A: Not very likely. Georgia is a non-judicial foreclosure state. As such, the lender can foreclose upon the property quickly. Foreclosure has the added benefit to the lender of wiping out most subordinate liens. Q: Will the lender do deed in lieu if you have lien on property? A: This will most likely reduce your chances of obtaining a deed in lieu of foreclosure from the lender. Short SalesQ: How do you do a real estate short sale in Georgia? A: Contact me. I can act as your agent and help you through the process. With your permission I will contact your mortgage company for a short sale package. This will contain most of the information we need to get started, then we will need to get the property ready to sell . Q: How does a short sale affect my credit? A: One of two ways. If you elect to "walk away" from the shortgage amount, then the creditor is going to annotate as much on your credit file. Your score will drop considerably. There are however some new rules as far as short sales go and the rules seem to be constantly changing. Q: Which is better, a short sale or deed in lieu of foreclosure? A: Again, if you own a property in Georgia, then it is unlikely that the lender will even consider a deed in lieu. Therefore, a short sale may be your best option. Q: Are lenders agreeing to short sales without recourse? A: Yes. As the foreclosure numbers continue to increase, lenders are becoming more understanding of the problems that surround foreclosure and the impact it will have on the debtors future. Q: Can I get a list of metro Atlanta short sales? A: Yes. If you are a buyer that has cash in hand, the best way to buy will be to watch the legal notices in the county you wish to purchase in for the foreclosure notices or purchase a list. If however you are obtaining financing, REOs or properties that have been approved for short sales will be your best bet. Click here for a list of REO properties in the area you are interested in. Provide as much detail as possible to help narrow down the list. Don't make the mistake of thinking that Foreclosures and short sales are the only places to get a good deal. Many listed properties are people who are trying to sell before they get in trouble and many of these properties can be a great deal also. Q: Which is better, foreclosure or a short sale? A: A short sale is typically the better option as you create an opportunity to pay off your mortgage. Q: Does a short sale cause a taxable event? A: No. Late in 2007 the IRS amended its code to prevent a short sale from causing a taxable event. As always, consult your tax professional for further details. Non-Judicial ForeclosureQ: How can I get a list of foreclosed homes in the metro Atlanta area? A: Contact us with your request and we will provide a list of foreclosed homes in your area. This is a specialized search so we ask that you are a sincere buyer looking to purchase a foreclosed home in the near future. Q: Where can I get a County foreclosure list? A: in Cobb County go to the Marietta Daily Journal's legal ad section, http://www.mdjonline.com/legalnotices. This page address changes all the time. Be aware that these are homes going to foreclosure and have not yet gone through the process. Q: When are the County foreclosure sales? A: The first Tuesday of the every month. On months where that Tuesday is a holiday (New Years and July 4th), then it is held the following day. Q: Do I have to attempt a short sale prior to foreclosure? A: No. It might be in your best interest, however. Q: Does a homeowner have to put their house on the market prior to foreclosure? A: Do you have to? No, but it would probably be in your best interest to attempt selling your home prior to foreclosure. That way you get the chance to salvage your credit before it is too late. Q: Does a foreclosure cause a taxable event? A: No. Q: How to buy at the foreclosure sale in GA? A: Very carefully! It is imperative that you do your homework and learn all you can prior to auction. Properties are purchased at auction for cash; not loans. Once that money has changed hands, you are liable for any surviving defects to the title of the property.
Credit Related QuestionsQ: What impact does foreclosure have upon credit? A: It will remain on your record for seven years. Your credit score will be greatly reduced as a result of foreclosure. Also, finding a lender willing to lend you money for a new home will be extremely challenging. Q: Can a previous owners' lien hurt my credit? A: No. Not unless you are somehow affiliated with that person and both of your names appear on the delinquent account. Q: Which is better for my credit, a short sale or foreclosure? A: Most definitely a short sale. Also, if you agree to take on the short amount as a personal obligation, you can actually preserve your credit. Q: Will a short sale affect my credit rating? A: Maybe. If you walk away from the short amount then the lender is going to annotate that on your credit, thereby affecting your credit. If you take back the short amount as a personal obligation then you may be able to preserve your credit. BankruptcyQ: How do I file bankruptcy? A: Please contact us with this as your question and we will refer you out to a local real estate attorney that also specializes in Georgia bankruptcy. Q: Can I negotiate a deed in lieu of foreclosure while in bankruptcy? A: Consult your attorney. It is doubtful that you can conduct any such negotiations without the permission of your Trustee. |