With a short sale, you sell your home and if you don't satisfy the mortgage amount the bank may forgive the deficiency. A short-sale is positive for both the lender who doesn't have to go through the process of foreclosing and the homeowner, who may be able to walk away without a huge amount of debt. After the short sale closing your debt is satisfied ,, it can be considered over done with gone
If you simply walk away, your house will be sold at auction, and if the amount it's sold for doesn't satisfy the mortgage, you'll be on the hook for the deficiency. Even after the court house sale you can still be held accountable for an unpaid balance on the first and the second unpaid mortgage balance
If your facing a foreclosure or have fallen behind on your mortgage call us before its to late.
Eric Reid, Managing Broker Renaissance Realty Group Inc.
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I guess the laws in GA are different than CA. Most of the loans here are secured by a deed of trust with most of the owners getting off the hook when they walk...
Please do look at this since we have seen different legal opions from state to state lawyer to lawyer
From the title of your post, I thought this was a question posed at all of us poor agents with nothing but lint in our pockets waiting for our short sale deals to be approved.
No doubt it is a less severe path for the home owner to go down then just giving up. But each situation is different and a professional opinion should be sought. There are pros and cons to each situation.
The above is true in basics but there's a caveat t the Short Sale process in that it puts a ding on your credit record; how bad of a ding is unknown. I too would rather go by way of a Short Sale rather than a foreclosure because in case of foreclosure, not only do you face the repercussions cited above, but it's generally at least 3 years before you'll be considered for a future mortgage loan and possibly longer if you file for bankruptcy.
It seems the managers of the money system are busy as termites to squeeze blood out of turnips rather than making sound decisions in what kind of loans are allowed. I remember those days when a borrower had better be on top of their game if they were going to get approved for a loan. The entire money system seems to operate in a dark world today. You default on a loan, the product can be resold, and yet the system follows you (the defaulter) around for yet - more money. This is one example of how America has changed, but unsure if I would consider this progress in a civilized society.