After foreclosure or short sale in Georgia, Do I still owe any money?
After foreclosure or short sale in Georgia, Do I still owe any money? Believe it or not the answer may be yes! Georgia is one of over 30 states that does allow the lender to collect from the home owner after a foreclosure. A recent article on CNNMoney.com explored some of the reasons but here is my explanations as simple as I can make it.
When you obtain a mortgage the loan is based on two factors.
When a home is foreclosed the value of the collateral is gone. The bank can resell the home for as much as they can get but if it is less than the entire loan amount they are still owed money. The foreclosure does not erase your promise to pay.
An agreed short sale can be the same. However since a short sale is a negotiated agreement it is very important that the negotiations include a release of liability from the loan. If that is not included then you still owe and the bank has the right to attempt to collect the shortfall even if they have agreed to the short sale.
Here is a portion of short sale contingency provided by the Georgia Association of Realtors:
"...This Agreement is therefore contingent upon Sellers mortgage lender(s) agreeing to: (1) take a reduced pay off on its mortgage(s) in an amount sufficient such that the purchase price of the Property pays off the reduced amount of the mortgage(s), any other liens, judgments and other encumbrances on the Property, the real estate commission(s) owing to the Broker(s) and the other expenses of sale for which Seller is obligated under this Agreement, without Seller having to pay any additional sums; and (2) release Seller from any claim, cause of action, suit or judgment for the amount of the reduction in the payoff on said mortgage(s)...."
Item #2 says the entire sales agreement is contingent upon the bank releasing the seller from future liability.
In either short sale or foreclosure the money is collected through the use of a deficiency judgment. Deficiency judgments have been fairly routine and common in the past after a car repo. The gets repo'd, sold at auction, and then the bank comes after the former owner for loss. Its the same process with houses but the numbers are a lot bigger.
This is another blog post in the works, but here is where I think a lot of us agents may fall short. Selling the home is not always the best option for the seller! Sometimes we are not the answer. A struggling home owner needs to explore other options like a loan modification or bankruptcy.
And that brings me to my final point. There are 3 ways the seller can be released from the liability of the debt.
Are you a home owner struggling to make payments? Feel free to contact me to see which options may be best for you.
NEW YORK (CNNMoney.com) -- As terrible as it is to lose your house to foreclosure, at least it's a relief to put your biggest financial headache behind you, right?
Wrong.
Former homeowners may still be on the hook if there's a difference between what they owed on their mortgage and what the bank could sell it for at auction. And these "deficiency judgments" are ticking time bombs that can explode years after borrowers lose their homes.
It can even happen to people who got their bank to approve them selling their home for less than it is worth.
Entire story here: http://money.cnn.com/2010/02/03/real_estate/foreclosure_deficiency_judgement/
Lithia Springs,Douglasville, Ga, Sweetwater Creek State Park, Hike
Last Saturday morning we met some friends for a hike at Sweetwater Creek State Park in Lithia Springs, (Douglasville), Ga. It has been years since I have walked there and previously I had only done the red trail down to the mill ruins.
Trails at Sweetwater Creek State Park
We met at the interpretive center/park office on Factory Shoals Rd and started off on the white trail. This was a beatiful walk that went through varied terrain and elevation changes. In the springtime I'm sure there would be a lot wildlife and native plants. Approximately the first 2/3 of the trail are pretty easy although sometimes steep. As the trail headed down to Jacks lake it became much more rugged. In the slideshow you'll see a pic of the waterfall that drops from Jacks lake down to the creek branch.
From this point on it was pretty ruggged for novices like us. Some of it was from the terrain and some of it was from debris left from the September floods....
Marietta Country Club subdivision, Kennesaw, Ga., West Cobb
Kennesaw Mtn High School (up to $300,00) Kennesaw Mtn. High School ($300,000-$500,000)
Kennesaw Mtn High School ($500,000 and over)
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Real estate search and valuation site Zillow.com relinquished its title as the second-most-visited real estate Web site to Yahoo! Real Estate in December, one month after upsetting the status quo among top sites in rankings compiled by online metrics firm Hitwise.
Zillow rival Trulia.com also fell -- from sixth to seventh place on the Hitwise top 20, displaced by ServiceMagic, Hitwise said.
Other sites gaining in the rankings were Apartments.com (up one place to 10th), ForRent.com (up one position, to 14th), Apartment Guide (up one place, to 15th), Listingbook Services (up three positions, to 16th).
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Bob & The AgentBobSells Team helps buyers and sellers in all of Cobb, Cherokee, North Fulton, Forsyth, Paulding, and Douglas Counties. www.AgentBobSells.com
About Bob Southard
Bob began his real estate career in 1980. While still in college at Georgia State University, Bob attended a Robert Allen "Nothing Down" seminar. Shortly thereafter he bought his first of several little or no down payment properties, an apartment house in Kennesaw. This was followed by several single family homes and a couple of duplexes and triplexes in NW Atlanta.
In Robert Allen`s New York Times best selling book Creating Wealth, Mr. Allen had this to say about Bob Southard, "......I don`t have any doubts about this young mans future".
Robert Allen,Creating Wealth, Simon and Schuster, 1983
In 2003 Bob passed the Georgia real estate exam with a score of 98 of 100. Since then Bob has helped many families with their home buying and selling needs. He specializes in first time home buyers and sellers in all of Cobb and Paulding county. He is the Team Leader for the AgentBobSells Team and prides himself in "Putting People First".
Bob is a member of the Cobb Association of Realtors, and a lifetime member Marietta Jaycees. He and his wife Barbara are Members of McEachern United Methodist Church. They reside in Powder Springs, Ga with their 3 daughters and 1 son.
Bob Southard has been involved in real estate most of his adult life. His passion is to help families become homeowners whether they are buying their first home or their tenth. He is now Team Leader of the AGENT BOB SELLS TEAM. To learn more about Bob and the AgentBobSells Team click on this link: AgentBobSells
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Buyers
Whether you're looking for your first home, your dream home or an investment property, I'm committed to providing you with the highest quality buyer service. When making the type of investment that buying a home requires, you deserve to have all the latest market information and the very best advice, both of which I can provide you with. To find out more click on this link: Agent Bob Helps Buyers
Sellers
The decision to sell a home is often dependent on many factors. Whatever your reasons are for selling, my proven effective marketing strategies will ensure that you get the highest possible price for your home. I guarantee to provide you with professional, ethical and confidential service and keep you fully informed every step of the way. To find out more click on this link: Agent Bob Helps Sellers
Testimonials There are many things I can say about the high quality of service I provide to my home seller and home buyer clients, but probably none would be as credible as testimonials from some of my recent clients themselves. So please take a moment to read the following testimonials. I hope they indicate my experience and integrity, as well as make it clear how much I enjoy helping people with their real estate needs. I would be happy to email you additional testimonials if you are interested. *********************************************************** "Ok, here is my real testimony... The process was extremely easy and efficient. Bob offered great advice without being pushy and, I got a great rate!" Janet Huffman, Powder Springs, Ga. "I don't think we could have done it without you. We OWN our own home thanks to you and your hard work. Thanks so very much." Chris and Rhonda Pearman, Douglasville, Ga. "Russ is self employed so we were worried that the mortgage process might be difficult. Bob was great to work with and the entire process was very smooth." Russ and Lori Owens, Dallas, Ga. "The entire process went very smooth, with no last minute surprises." Andrew and Bridget Doss, Acworth, Ga. "Thanks for putting up with us all these months. We love the house ... thank you so much Bob." Earnest and Sonya Davidson, Marietta, Ga. "Thanks, Bob. I'll definitely keep you in mind. I appreciate your over-the-top service on my townhouse sale." Deborah Hill, Sandy Springs "I just wanted to thank you again for helping us find our home. We were unfamiliar with the Dallas area, and if it wasn't for you and the MLS we never would have found our house. You made the whole process easy and relatively stress free. Thank you for your patience and expertise. Thank you for answering our 20 million questions. You are very good at your job." Charlie, Stephanie, and Megan Reddick, Dallas, Ga "Thank you so much for everything you did for us before, during, and after we bought our house. We love it and so do our family and friends! ... I will definitely send people your way if I hear of any !" Denise ( and Jade) Kettles, Powder Springs, Ga.
Here is a recent testimonial fro m a client whose home was previously listed with another agent. It was on the market at $149,900 for 183 days with no offers. We sold it in 46 days for $159,300!
"I just want you to know I am so appreciative of the outstanding job you did in getting my house sold. If it had not been for your professionalism and market knowledge I have no doubt that the house would still be on the market. You did and outstanding job and were always available when I needed to speak to you. I feel you went above and beyond what was expected and for that I am truly grateful. I don't know what else to say other than I rate you above excellent in every aspect of the sale and I will recommend you highly to anyone that you might need a recommendation for. I hope all is well with you and your family and hope you have a great 4th of July and have know doubt that with your level of excellence and professionalism you will continue to be a top performer in your endeavors. Thank you so much again !!!"
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