Facing Foreclosure in Atlanta Georgia? You have options including a Short Sale
Posted: September 22nd, 2008
Category: Foreclosures/Short Sales, Real Estate Finance
A Short Sale may be an option
Facing foreclosure is not only a financial crisis for Atlanta homeowners, it is can also be an emotional crisis. So this is a time to take stock and examine your options with your Atlanta home.
Read Also: A Deeper Understanding of Short Sales
Why Foreclosures happen
There are several reasons why Atlanta homes go into foreclosure. Perhaps the Atlanta area home was purchased at the peak of market and just before prices started to fall. Another scenario might be that the mortgage was interest only, so no equity was built up. Or perhaps the mortgage was an ARM and now the interest rates have risen, making it difficult for the owner to handle the mortgage along with daily expenses. The reason is part of the past, and owners must now deal with the future. The first item on the agenda should be to avoid foreclosure in Atlanta.
If you can still pay your Atlanta mortgage for the foreseeable future and don’t need to sell your home, then your best bet might be to wait out the market until the Atlanta Real Estate market is more favorable for sellers.
If you are unable to pay your current Atlanta mortgage but could if refinancing was in the picture, you should negotiate with your Atlanta lender. If they decline to refinance then you should contact one of the government agencies offering assistance to homeowners who find themselves in your situation. This solution might include the agency working with your lender to strongly encourage them to refinance your home rather than foreclose.
The National Association of REALTORS® has created a useful document for homeowners in “How to Avoid Foreclosure and Keep Your House” if you are in trouble it is an excellent place to start. Some of the resources cited in this document include:
For immediate advice, call 888-995-HOPE To speak to a counselor on how to avoid foreclosure. Available in English and Spanish, 24/7. Or visit their website for more information.
The reasons your Atlanta lender might not want foreclosure is because it really represents a no-win situation for both parties. A foreclosure is expensive and takes a great deal of time, and the lender ends up with a house they really don’t want, and if it goes to auction it likely will sell for far less than it should.
Why a short sale is in your best interest.
This is a step above foreclosure. Both show up on your credit report, but the short sale is less of a black mark than a foreclosure. While foreclosure is a legal settlement where lawyers and possibly their fees are involved, a short is between you and your lender, and you will be more able to buy another Atlanta home, obtain credit cards at a better rate or even renting an Atlanta home sooner than if you had gone through foreclosure. There is also a a new tax provision that waives income tax took effect 12/20/07. The provisions excludes forgiven mortgage debt on a principal residence for the period of January 1, 2007 through January 1, 2010. Previously forgiven mortgage debt was considered the same as taxable income. Ask your CPA for further information.
Read Also: Five Tips to purchasing a Foreclosure
An Atlanta short sale is an involved process, but in a nutshell the seller needs to establish a selling price with the help of an Atlanta Realtor, find a buyer and with an offer, in hand present the offer to the mortgage holder. Along with the offer you must disclose your finances as well as a hardship letter that details why payments can no longer be made. Check with your Atlanta lending institution to see if there is other information that is required. If the offer is ultimately accepted then you have taken the first step in your financial recovery.
Read Also: What everyone should know about the housing bubble
Discussion: Comments
Are You Aware of What Your General Liability Insurance Does Not Cover
Posted: September 20th, 2008
Category: real estate law
Many business owners do not realize their general liabililty insurance policies do not cover liability exposure created by employee benefit programs that their company offers. Bill Snellings, owner of the Snellings Walters Insurance Agency in Sandy Springs, explains the issue this way:
“Most business owners do not realize the liability exposures that are created by the existence of employee benefit programs such as group medical, dental, disability, 401k, workers compensation insurance, etc. Employers can be held liable for negligence in the maintenance of these plans. For example, failure to add a new employee to the group medical insurance and a subsequent medical claim could end up the responsibility of the employer. Failure to maintain workers compensation coverage is another area of concern along with failure to provide COBRA letters to terminated employees.”
One way to manage this liability risk even in situations where there is a human resources department is to obtain additional coverage for employee benefit liabilities. According to Bill, “Coverage can be endorsed to an existing general liability policy to cover most of the exposures discussed above and the premium is nominal many times around $100 annually”.
As always, your trusted
Atlanta real estate attorney.
Discussion: Comments
Rough Week for Investors in the Stock Market
Posted: September 18th, 2008
Category: commercial news
Investors in the stock market have been going through a rough period this week and for the last year.
Investing in tenant occupied commercial properties with a decent CAP rate is a viable alternative to investing your money in the stock market. This form of investing requires extensive due diligence but has the ability to grow your investment dollars steadily. Its no secret that we are experiencing a down turn in the real estate market. If you purchase a property in a down market with a good rate of return, as the market recovers, your property will likely increase in value. This lines up with the old adage of “buy low, sell high”. The object of this type of investing is to obtain a good return on your investment dollar and have the possibility of picking up a decent rate of appreciation as the market recovers.
Over the past few years, many commercial developers retained ownership of some of their properties and leased them to tenants. A portion of these developers are now selling their tenant occupied spaces to obtain cash to purchase or finance other deals in this market. If you are interested in earning seven to eleven percent on your investment dollars, please contact me (James West) at Maxsell Real Estate 678-741-2060 to learn about the opportunities in your area.
Discussion: Comments
Attention Atlanta Renters! Now is the time to purchase an Atlanta home!
Posted: September 18th, 2008
Category: First Time Buyers, Real Estate Investors
It is time to buy now!
Are you sitting on the fence for the wrong reasons?
If you currently do not own a home and were holding off buying an Atlanta home because prices were out of your range, then you should take advantage of the declining market. In a Buyer’s market you have an opportunity to buy “right”.
Delaying the purchase of an Altanta home in the hopes that the market will continue downward could be a mistake. Don’t be sitting on the sidelines in the hope that it will continue on the downward spiral – it might not.
Read Also: Atlanta Stats and Facts
Now is not only for first time buyer!
By the same token, if you do own your Atlanta home, and were thinking of moving up, it is also a good time to check the market out. There are more factors for you to consider than the first-time buyer, but these factors are not all negative.
· Equity – the more equity you have in your home the better the argument to putting it to work in a new home.
· Price Differential – Even though your chances of getting top dollar in a Buyer’s market might be an unattainable challenge, remember that when you go to buy, you won’t be paying top dollar either. Do the math, you might like the results. For instance a lower priced home will likely get closer to market value than a more expensive home. For figuring purposes, say a $100,000 home ends up selling for $85,000. But a $200,000 home ends up selling for $175,000. If you’re the person selling the first home and buying the second, you have netted $10,000 between the two transactions.
· Investment Property. This is the time to investigate Atlanta rental property. There are many Atlanta investors who have spread themselves too thin and are interested in divesting themselves of some of their Atlanta property. Read Also: So you want to be an investor
· Vacation or Retirement Homes. If you are in a position to take advantage of purchasing a vacation home, now is the time. If you had thought of retiring to a location that has been severely impacted you have an opportunity at hand that might now be available in the future.
Read Also: What everyone needs to know about the housing bubble
In any event, if you have considered buying an Atlanta home, now is the time. Don’t sit on the sidelines and then in the future say “I should’ve”.
Are you sitting on the fence for the wrong reasons?
Discussion: Comments
Real Estate Facts & Stats
Posted: September 15th, 2008
Category: real estate news
Recently, the Georgia Association of Realtors magazine published statistics from RealtyTrac and the 2008 NAR Member Profile, here is a summary of the findings:
- Georgia ranks 8 out of 50 states for foreclosures.
- Your home will double in value on average every 10 years.
(I have hard time believing this one, but that’s what it says) - The average age of a first time home buyer is 34.
- The average home owner’s wealth that comes from their Home’s equity is 60% of net worth.
- Foreclosures increased 112% from 2nd quarter 2007 to 2nd quarter 2008.
- 2007 was the fifth best year on record for existing home sales.
- The average net worth of a home owner is $171,000 vs $4,800 for renters.
If you are considering becoming a part of these statistics, not the foreclosure stat, then contact us today for specific market reports about the North Atlanta Real Estate Market.
Discussion: Comments
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