Atlanta Foreclosures and Short Sales

atlanta foreclosures and short sales

Atlanta distressed properties fit into two different categories, Atlanta foreclosures and short sales.

In real estate, a short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower’s financial situation.

A short sale typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure. A bank will typically determine the amount of equity (or lack of), by determining the probable selling price from a Broker Price Opinion BPO or through a valuation of an appraisal. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency.

In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

As a home buyer looking for Atlanta short sales, it is critical that you work with a Realtor that specializes in short sales. We will work with you to educate you on the process, setting priorities, expectations and more. Contact us today to get started. If you’re interested in an Atlanta short sale, here are all Atlanta short sales currently for sale.

Foreclosure properties, otherwise known as REO properties, are homes that the bank has taken back from homeowners through a legal process as an attempt to recover the balance of a loan from a borrower, who has stopped making payments to the lender. The legal process forces homeowners to catch up payments or the bank can force the sale of the home used as the collateral for the loan. Initially, the lenders attempt to sell the home on the courthouse steps, held monthly, as part of the foreclosure process. The majority of homes don’t receive a bid that the bank is willing to accept. The result is the bank is now the owner of the property and brings it back to the market as a foreclosure or REO property. So when you’re searching for Atlanta foreclosures here, you’re seeing all the homes that have been through the foreclosure legal process and the bank is the outright owner. The advantage of looking at foreclosures is that decisions are made much more quickly than with a short sale.

As a home buyer looking for Atlanta foreclosures, it is critical that you work with a Realtor that specializes in foreclosures. We will work with you to educate you on the process, setting priorities, expectations and more. Contact us today to get started. If you’re interested in an Atlanta foreclosure, here are all Atlanta foreclosures currently for sale.

Since Atlanta foreclosures and short sales often represent the best deals in the Atlanta real estate market, they tend to go under contract quickly.