It was a pleasure to speak yesterday on the current real estate market at the Greater North Fulton Chamber of Commerce Networking meeting at Johns Creek Emory Hospital. As interest rates rise the cost of purchasing the same property will increase; therefore, it can be costly to wait to see if housing prices will go lower. There are some great buys out there and interest rates are still relatively low. Some of the topics discussed were: short sales, foreclosures, and deed in lieu of foreclosure.
In a short sale, you sell the house for less than you owe. You can't do a short sale without the lender's permisswion. A short sale is an approved sale of the property to an unrelated third-party for less than is owed on the mortgage preventing a foreclosure on the borrower's credit report. With a short sale, you make necessary repairs to the house, pay the real estate commission, taxes and government fees and give the lender whatever money is left over - a partial payment. Talking to your lawyer and your tax accountant will help you to decide if this is right for you.
A deed in lieu of foreclosure allows the homeowner to transfer the property voluntarily to their lender or mortgage company and the debt or deficiency is often forgiven. Foreclosure laws, regulations, deficiency judgments, right of redemption, and time line vary greatly in each state and are in constant change. Please consult a local lawyer for specific procedures in your state. Foreclosures have a negative impact on your credit record.
For more information on the real estate market: http://www.pam.santoro.harrynorman.com/
Pam Santoro, Realtor
Harry Norman Realtors
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