If you owe more on your Atlanta home than it is currently worth, you might feel trapped. If you stop paying, you face foreclosure. But is a “Short Sale” any better?
What is a Short Sale? A short sale is when the bank agrees to accept less than the mortgage balance to let you sell the house. For example, you owe $200k, but the house is only worth $160k.
The Credit Score Comparison
- Foreclosure: This is the “nuclear option.” It can drop your credit score by 200-300 points and stays on your report for 7 years. Most lenders won’t give you another mortgage for 5-7 years.
- Short Sale: This still hurts, but less. It typically drops your score by 100-150 points. Many people can qualify for a new mortgage in just 2-3 years.
The “Deficiency” Danger in Georgia In Georgia, if the bank loses money, they can sue you for the difference (a Deficiency Judgment). However, in a negotiated short sale, our team can often get the bank to waive this right, letting you walk away free and clear.
Do You Qualify? Negotiating a short sale with a bank is complex and requires a lot of paperwork. Do not try to do this alone. The team at WE BUY ESTATE has experience dealing with banks. We can determine if your property qualifies for a short sale and help you navigate the process.