Upside Down Mortgage
An upside down mortgage is when the payoff
amount of the loan is greater than the value of the property. This
is also called negative equity.
Homeowners who are upside down on their
mortgages cannot sell their house and payoff the loan.
Bank Approval Required
When a home owner can no longer make payments
on the loan due to a hardship, the lending bank may agree to take a
lower payoff than the balance of the loan if the house is sold. The
transaction requires bank approval.
The lender will review the home owners
financial hardship case, and if the owner meets the criteria set by
the bank, the sale of the home at a lower price than the mortgage
payoff can be completed.
The Short Sale Process
The type of home sale described
above is called a Short Sale.
The process of a Short Sale can
be long and tedious. Some real estate pros who have been in the
business for a while refer to Short Sales as "Workouts".
The bank will require the seller to submit
financial statements and other documentation related to the seller's
hardship case. Short Sale packages can easily contain over 100 pages
of documentation which the bank must study before approving a Short
Buyers of Short Sale homes must
be patient throughout the process!
The buyer will normally have to
wait for 45 to 60 days (or longer) to get an answer that the sale is
approved. Even then, the sale can be denied and the buyer will lose
the opportunity to buy the house after a long waiting period.
Do You Need to Short
Sale a Home in the Atlanta Area?
If you are upside down on your
mortgage in the Atlanta area and you need to sell, call or text me
on my cell phone at 703-371-9548. I can find a buyer for your home
and assist you through the Short Sale process.