The pressure remains as Georgia’s distressed homeowners continue to turn to short sales as a safety net, in an attempt to prevent further damage to their credit ratings. A short sale is simply an alternative to foreclosure.
When a borrower can no longer pay the mortgage on their home or property and the bank decides to sell it for less than what was owed, it is considered to be a distressed property, and is sold as a “short sale”. All three parties involved (buyer, seller, and lender) in the sales transaction can benefit from it.
Short sales are designed to help homeowners avoid poor credit ratings resulting from foreclosure, by allowing them to sell their home to a ready, willing, and able buyer at a cheaper price than their current mortgage. This process helps the bank to avoid hefty fees associated with the foreclosure process, and it gives qualified buyers an opportunity to purchase a home below market value.
Closing on a short sale has always been such a lengthy process. However, due to the bank’s unusually enormous inventory of foreclosed homes, acquired in the past few years, it is now easier than ever before to buy or sell a distressed property.
On April 25, 2010, one of the most important updates, mandated by the federal government, took place concerning short sale properties in which a Home Affordable Foreclosure Alternative (HAFA) was established. According to http://www.atlantagashortsales.com/, HAFA simplifies and streamlines the short sale and Deed in Lieu process by providing a standard process flow, minimum performance time frames, and standard documentation.
Although there are basic guidelines that must be met to qualify for HAFA programs; in the end it is up to the individual loan servicer to determine the conditions in which it will accept or deny the short sale.
Basic HAFA guidelines are as follows:
1. The property must be the borrower’s primary residence.
2. The mortgage loan must be a first lien mortgage originated on or before January 1, 2009.
3. The mortgage must be delinquent or default must be reasonably foreseeable.
4. The current unpaid principle balance must be equal to or less than $729,750.
5. The borrower’s total monthly payment must exceed more than 31 percent of their gross income.
Lending institutions now encourage the short sale process, whereas in a stable housing market they avoid them at all cause. As a result, real estate firms specializing in short sale negotiations are spreading like wildfire throughout the Greater Atlanta region.
Gloria Brumfield, a professional loss mitigation specialist with Group 111 Realty, works closely with distressed homeowners to ensure the short sale process goes smoothly and efficiently. With over 5-years experience selling distressed real estate in a bear market, Brumfield is equipped with the skills and knowledge to turn this nightmare into a blessing for many Georgians. “Gloria understood our situation and exercised great patience in explaining all the options available to us,” said Mr. Donovan, an HAFA recipient. She believes that troubled homeowners should be educated in every step of the short sale process.
Group 111 Realty offers foreclosure assistance such as:
• Short Sale Processing
• Loan Modifications: NO UPFRONT FEES
• Debt Settlement
• Credit Repair Services
• Forensic Loan Audits
• Pre-Paid Legal Services
Thanks to people like Gloria, homeowners plunging deeper in debt can now get a good night’s sleep knowing that a rescue boat has arrived. And with HAFA making the short sale process quicker and less involved, investor’s are more eager than ever before to purchase these distressed properties.
For more information on short sales and distressed homes contact Gloria Brumfield at gloriasellsrealestate@gmail.com.
Or click on the link below:
www.group111solutions.com
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