Your Source For Georgia Short Sales!
Foreclosure Avoidance


Foreclosure is one of the most devastating financial challenges that a family can face
and one that many times can be avoided. The options available to residents for foreclosure
are many, including but not limited to short sales. Following is a brief explanation of these
solutions:

Reinstatement

A reinstatement is the simplest solution for a foreclosure, however it is often the most
difficult. The homeowner simply requests the total amount owed to the mortgage company to
date and pays it. This solution does not require the lender's approval and will 'reinstate' a
mortgage up to the day before the final foreclosure sale.

Forbearance or Repayment Plan

A forbearance or repayment plan involves the homeowner negotiating with the mortgage
company to allow them to repay back payments over a period of time. The homeowner
typically makes their current mortgage payment in addition to a portion of the back
payments they owe.

Mortgage Modification

A mortgage modification involves the reduction of one of the following: the interest rate on
the loan, the principal balance of the loan, the term of the loan, or any combination of these.
These typically result in a lower payment to the homeowner and a more affordable mortgage.

Rent the Property

A homeowner who has a mortgage payment low enough that market rent will allow it to be
paid, can convert their property to a rental and use the rental income to pay the mortgage.

Deed-in-Lieu of Foreclosure

Also known as a "friendly foreclosure," a deed-in-lieu allows the homeowner to return the
property to the lender rather than go through the foreclosure process. Lender approval is
required for this option, and the homeowner must also vacate the property.

Bankruptcy

Many have considered and marketed bankruptcy as a "foreclosure solution," but this is only
true in some states and situations. If the homeowner has non-mortgage debts that cause a
shortfall of paying their mortgage payments and a personal bankruptcy will eliminate these
debts, this may be a viable solution.

Refinance

If a homeowner has sufficient equity in their property and their credit is still in good standing,
they may be able to refinance their mortgage.

Servicemembers Civil Relief Act (military personnel only)

If a member of the military is experiencing financial distress due to deployment, and that
person can show that their debt was entered into prior to deployment, they may qualify for
relief under the Servicemembers Civil Relief Act. The American Bar Association has a
network of attorneys that will work with servicemembers in relation to qualifying for this relief.

Sell the Property

Homeowners with sufficient equity can list their property with a qualified agent that
understands the foreclosure process in their area.

Short Sale

If a homeowner owes more on their property than it is currently worth, then they can hire a
qualified real estate agent to market and sell their property through the negotiation of a
short sale with their lender. This typically requires the property to be on the market and the
homeowner must have a financial hardship to qualify. Hardship can be simply defined as a
material change in the financial stability of the homeowner between the date of the home
purchase and the date of the short sale negotiation. Acceptable hardships include but are
not limited to: mortgage payment increase, job loss, divorce, excessive debt, forced or
unplanned relocation, and more.

This represents only a summary of some of the solutions available to homeowners facing
foreclosure. Locate a CDPE in your area for an evaluation of your individual situation,
property value, and possible options.

Understanding your options now could mean all the difference in the world.
What is a Short Sale?

A short sale can be an excellent solution for homeowners who need to sell, and who owe
more on their homes than they are worth. In the past, it was rare for a bank or lender to
accept a short sale. Today, however, due to overwhelming market changes, banks and
lenders have become much more negotiable when it comes to these transactions. Recent
changes in corporate policy and the Obama administration have also improved the chances
of getting a short sale approved.

But to be technical, here's a more official definition:

A homeowner is 'short' when the amount owed on his/her property is higher than current
market value.

A short sale occurs when a negotiation is entered into with the homeowner's mortgage
company (or companies) to accept less than the full balance of the loan at closing. A buyer
closes on the property, and the property is then 'sold short' of the total value of the
mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following
circumstances:

Financial Hardship – There is a situation causing you to have trouble affording your
mortgage.

Monthly Income Shortfall – In other words: "You have more month than money." A lender
will want to see that you cannot afford, or soon will not be able to afford your mortgage.

Insolvency – The lender will want to see that you do not have significant liquid assets that
would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of
experienced professionals. Find a CDPE in your area by clicking here. Together, you can
identify all possible options and, when possible, a CDPE can assist you in the quick
execution of a short sale transaction.

Short sales have become much more efficient and stream lined. No longer do you have to
wait for months for the bank to make a decision. We are getting approvals within two weeks
once all documents are in the banks hands.

Call me to start the process before your options are gone.
Learn the TRUTH about short sales
Useful Links

Mortgage Modification Resources

The Home Affordable Refinance Program
www.MakingHomeAffordable.gov

HOPE NOW
www.HopeNow.com

Fannie Mae Loan Lookup
http://loanlookup.fanniemae.com/loanlookup/

Freddie Mac Loan Lookup
https://www.freddiemac.com/corporate


HUD Approved Counselors

Catholic Charities USA©
www.catholiccharitiesusa.org

Citizens' Housing and Planning Association, Inc.
www.chapa.org

Consumer Credit Counseling Service of Atlanta™
www.cccsatl.org

HomeFree-USA©
www.homefreeusa.org

Homeownership Preservation Foundation©
www.995hope.org

The Housing Partnership Network©
www.housingpartnership.net

Mission of Peace Housing Counseling Agency©
www.missionofpeace.com

Mississippi Homebuyer Education Center©
www.mhbec.com

The Mon Valley Initiative
www.monvalleyinitiative.com

Money Management International, Inc.©
www.moneymanagement.org

National Council of La Raza
www.nclr.org

National Federation of Community Development Credit unions
www.cdcu.coop

National Foundation for Credit Counseling©
www.nfcc.org

The National Urban League©
www.nul.org

NeighborWorks® America
www.nw.org

Neighborhood Assistance Corporation of America© (NACA)
www.naca.com

Rural Community Assistance Corp.
www.rcac.org

Structured Employment Economic Development Co.
www.seedco.org