Short Sale and Loan Modification Information 

Banks continue to work with buyers either to help modify their loan, or to work with an agent through a Short Sale.  Georgia has a non-judicial process and the foreclosure process can be quick.  The Mortgage Debt Relief Act of 2007 is set to expire on December 31st, 2012 with up to 2 million of debt forgiven.  However, The Homes Affordable Foreclosure Alternative Program or HAFA created in 2009 just announced they will extend their program to work with distressed home owners for an additional year until December 31st, 2013.  HAFA has different guidelines than the Debt Relief Act of 2007.

One in ten home owners are currently behind on their mortgage.  Statistics show around 17 million people in the United States fall in this category.  The state of Georgia is among the top 5 in the country.  One out of two transactions in this state presently sell under a distressed property situation.  Included in this catergory are foreclosures, REO's, auctions, etc. and Short Sales.

Frequently Asked Questions about Short Sales and Loan Modification

What is a Short Sale?
It's when the bank agrees to take a shortened amount on the loan amount due.  If your loan pay-off is $250,000 and the bank agrees to settle your debt for $200,000 this would be an example of a Short Sale.  The bank is short $50,000.
Why are home owners excited about The National Mortgage Settlement Act?
It was approved in March of 2012.  It's roughly 25 Billion dollars in relief for distressed homeowners, state and federal government.  It will be used for loan modifications, principal reductions, and possible short sales. 
Should I quit making payments to do a short sale?
No. Call your bank.  All situations are different and never the same.
What about Loan Modification or Deed in lieu of foreclosure?
Call your bank and see if either is an option.  If you can't rework your loan or they won't execpt a deed in lieu of foreclosure, then a Short Sale is possible.  Let them know you'll be working with the Bobby Light team.  
If my house is scheduled for auction/foreclosure can I still do a Short Sale?
Yes-maybe.  Call your bank to stop it.  Georgia is one of many states that forecloses by non-judicial process.  This means the bank can literally take back your property in as little as 2 or 3 months once you stop making payments.
Why are banks doing more short sales?
The bank does not want a non-performing asset, not to mention vagrants in the house, theft, and loss of value. The bank gets the house sold by saving them the cost of foreclosure, and the buyer gets a home at a reduced price in almost all situations.
How much work will I have to do?
Fortunately for the seller there is very little work to do once the process is started. It is however, important to stay in contact with me as we work on the banks schedule and usually need to respond quickly.
What will it cost me to do a short sale?
The bank or lender pay the commission to list and sell your home.  Marketing costs fall on the Bobby Light team.  The buyer will understand they are buying the house "AS IS".
Must I Use an Agent?
Yes.  The home must be listed to achieve highest and best price. 
Have you been able to close all your short sale listings for clients?
No. In some instances clients were able to modify their loan and reduce payments.  We go over all your options.  Short Sales are often complicated.  However, if a willing seller, buyer, and the bank are all on the same page the process can be simple.
Does the bank own the home?
No. The seller owns the home.  The purchase agreement is between the seller and buyer.  The bank approves the price or not.  The buyer typically has 48 hours to execpt the banks offer or it moves on to the next buyer.
Why would a seller do a short sale over a foreclosure?
Several reasons, including credit, job security, future job applications, among others.  Contact your attorney.
Why do I want a Satisfaction from the lender?
The lender must state in writing that there will be no liens against you, that you will not owe additional money.  It is possible that you may receive a 1099 from the government.  If you sold your home as an owner occupant this should be forgiven.  Please contact your CPA, accountant or attorney.
What is the new HAFA or the Home Affordable Forclosure Alternatives?
This is IMPORTANT!  Work with your lender to see if you qualify.  It basically states you are relieved of all debt and liens for the transaction of selling your primary residence.  Also, you may be entitled up to $3000 dollars at closing. In return, they want the property in good condition.
What is a BPO or Broker Price Opinion?
It is not an appraisal of your home.  More like a market analysis of what homes have been selling for in your area.  This gives the bank an idea how to price your home.  The house should be in marketable condition.
Why Should I Use You?
I have over 10 years real estate experience and work with major banks  including Wells Fargo, Bank of America, GMAC/Ally and others.  I am also an associate broker, of only which a small percentage of licensed agents in Georgia are designated.  It simply means I have an additional level of education and state issued licensing to provide the highest level of knowledge, ethics, and service possible.

Call Bobby Light Direct 404 731 9959 or LightBobby@yahoo.com for more information about your real estate needs.  Converstations are confidential.  There are many ways to list your property as a short sale.  Some owners want it known they are in a distressed situation while others want brokers to know in private remarks only.  Call me about your situation.