An increase in foreclosure rates will inevitably bring with it an increase in short sales. But what is a short sale?
A short sale happens when you sell your house for less than your remaining mortgage balance, the proceeds of which go to the lender and in return the lender forgives the remaining balance. Selling your home as a short sale is one way to avoid foreclosure.
As a general rule, lenders lose money when they foreclose on a property. Consequently, they would rather not have to foreclose if it can be avoided. A short sale represents an opportunity to cut their losses because a short sale usually allows them to recoup more of the cost of the loan than a foreclosure process would.
However, don’t think that a short sale is an easy thing to accomplish. In order to get permission for a short sale, you must provide documentation showing a genuine financial hardship. And don’t think that the decision for accepting a short sale is solely in the hands of the lender. Sure the lender must first agree, but this is not the final word. If there is mortgage insurance involved, this company also gets input on the decision. If there is an investor backing the mortgage, they also get input as to whether to accept a short sale.
The transaction process for a short sale can be rather cumbersome as well, whether you’re on the buying or selling side. Many short sales fail due to additional demands by the lender, such as requiring the broker to reduce his or her commission and/or that the seller signs a document requiring him or her to pay back the shortfall.
If you’re on the selling side of a short sale, consider having your agent or other experienced professional negotiate with your lender for a better deal. And remember, if the lender does accept a short sale and forgives part of your debt, that is considered taxable income and you must declare it as such to the IRS.
If you are moving locally or from out of state, do yourself the biggest favor ever and engage the services of George Kammerer. George's knowledge of the area is unsurpassed, and guided us to an area that we described we were interested in living and suited our specific needs. Since we were moving from out of state, the timing was critical that we could coordinate our time and George's to the maximum. He also is remarkably quick to respond to any email or text that you submit. He is the first realtor [we've used] that truly wants his clients to be happy! He asks questions that are relevant to finding the house that you expect to find within the price range that you specify....George does not "push" nor does he "fast talk" you into making a hasty decision. He is a very patient man and has a background that can assist you in answering questions you may have while reviewing a home. I believe my husband and I are "sort of picky" and we would rate George a 5+ in every area shown above.Ruth VonDreau
We worked with George in selling our home (which was a great experience), so having him help us buy our next home was a no-brainer. He was always available to us, and would hunt down information we felt important in the listings we were viewing. His expertise in the area, especially Chattanooga, was very helpful and allowed us to finally choose a home for our family. We would highly recommend his services.Ralph & Jennifer Hairsine
We visited Chattanooga on 2 separate occasions to look at properties with George. He gave us 100% of his time and attention and knew exactly what we were looking for in a home. We trusted him so much in fact that we ended up purchasing a home that we never got a chance to visit in person. It came on the market just as we were leaving Chattanooga, but George visited the listing, took pictures and inspected the property. He was certain it was the home for us and we trusted him. George went above and beyond what we expected by visiting the home to make sure that it was properly maintained for 3 months while we prepared to relocate from Nevada. He even turned on the air conditioner for us once the weather warmed up to keep the house comfortable. We are happy to have met him and now be able to call him a friendJacquie Brown
Check Out this site for all your Chattanooga commercial property needs! The Chattanooga Commercial Team of Heather Bevil and Valerie Gallups bring true commercial real estate experience to bear when representing Buyers, Sellers, Landlords, and Tenants. Just click the logo to explore!