We buy houses in Irondale Georgia and provide residents with the ideal way to sell their homes fast by offering cash for houses in Irondale GA. If you are behind on home payments and looking at a possible foreclosure in your near future, maybe there is a better way.
But first, let’s take a closer look at the difference between a short sale vs foreclosure and how each presents advantages and difficulties to borrowers/sellers and homebuyers in Irondale GA.
What Is a Foreclosure in Irondale GA?
In simple terms, “A foreclosed home is one in which the owner is unable to make his mortgage loan payments and the bank repossessed the home” (source). If you stop making your house payments, your lender has the right to foreclose on your property so they can attempt to recoup their money lent to you.
A home is typically foreclosed on when a borrower fails to make mortgage payments. The lending institution assumes ownership and possession of the property, evicting the borrower. These properties are then sold at auction or more traditional means utilizing the service of real estate agents. A foreclosure can damage the credit rating of a borrower and make it very difficult to obtain a mortgage for many years.
Depending on the state that you live in, a foreclosure can work in different ways. Check out the foreclosure process information over here at the HUD Government website.
What Is a Short Sale in Irondale, Georgia?
In a short sale, the home is still owned by the borrower.
“A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens’ full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.”
In some cases, a short sale is an option agreed upon by borrowers and lenders. In a short sale, the home is sold for less than the outstanding balance of the mortgage. The unpaid balance (known as the deficiency) may or may not still be owed by the borrower.
This option typically takes some time as a few different lending institutions may own the mortgage. All parties who have a stake in the property must agree to the terms of the sale, and a potential deal could fall through if even one lender doesn’t agree.
Short Sale vs Foreclosure – Your Options in Irondale
While both options can have ramifications, a short sale often has less of an impact on the borrower’s creditworthiness. A foreclosure could impact a borrower’s credit score by 300 or more points, where a short sale may only dent the credit score by 100 points.
Borrowers who are foreclosed on are often ineligible to purchase another home for 5-7 years with a traditional mortgage, where under certain circumstances, a short sale borrower can purchase immediately.
As many Americans struggle with an economy that has yet to completely recover from the 2008 crash, folks are having a hard time making monthly mortgage payments. Choosing between being foreclosed and initiating a short sale (or a third option, selling your Irondale GA house fast) is an easy choice for a borrower having trouble paying their mortgage on time.
Sometimes, lenders are willing to work with borrowers to complete a short sale to avoid the fees and time-consuming process of conducting a foreclosure in Georgia.
Our suggestions are always these:
- Talk with your lender and discuss ways they can work with you on your loan. We offer this service where we can help guide you in the right direction if you run into issues with your lender. Just reach out to us on our Contact page and we’ll discuss your situation.
- Attempt a short sale or other programs your lender may have that forgive part of your loan or create a new or more affordable monthly payment so you can get back on your feet.
- If the bank isn’t willing to work with you very much, your best option may be to sell your house. Work with a local real estate house buyer service like Resideum, LLC to sell fast for an all-cash offer. If you’re interested, we can look at your situation and make you a fair offer on your house within 24 hours. Just fill out the form on our website below.
- Foreclosure. The last resort is to let the house fall into foreclosure. This is the worst possible scenario. It’ll harm your credit and you could still be left with money owed to the bank even after the foreclosure is finished.
Sell My House in Irondale GA
By knowing your options, you may be able to dodge a significant impact on your credit score, allowing you to purchase a new home when your situation improves. A foreclosure on your credit report makes that possibility extremely difficult for 5-7 years, so if you have the opportunity to sell your house in Irondale GA quickly, that can be the better option.
Do you want to avoid foreclosure? We are local Irondale GA home buyers and we’d like to make you a fair all-cash offer on your property.
Give us a call anytime at (678) 710-6130 or
fill out the form on this website today! >>
Greg Kurzner, is CEO of Resideum, Atlanta’s Professional Homebuyer company. Greg has been a force in Atlanta real estate for over 30 years. He has been involved in the sale of over 1 Billion in real estate transactions in his career and consistently ranks #1 in sales by units by Atlanta Realtor Association. In addition to Greg being a licensed real estate broker, he is also a licensed general contractor and a nationally-recognized expert in investment real estate.