Georgia Short Sales: Little Known Facts
Courtesy of Christy Cole of Bouvette Properties
In a short sale, the homeowner NEEDS to sale their real estate, the house is worth less than what is owed on it, and the homeowner does not have the funds to make up the difference owed to the mortgage company.
Once a homeowner is to the point of the terms of a Georgia short sale approval being issued in writing, the “demand letter” will outline the acceptable terms of a purchase and sale agreement, as well as how the mortgage company will release liability.
ANOTHER PIECE OF THE PUZZLE:
After closing, a homeowner will probably receive a 1099 in the mail from the sale of the home. Regardless if the homeowner is fully released from the debt or not, the IRS considers this unpaid debt as extra income to the homeowner. Back in 2007, President Bush enacted the “Mortgage Debt Relief Act”, which is in place through 2012. By meeting certain criteria, someone facing an Atlanta Short-Sale could be excused from this taxation. Call me to find out if you might be exempt from taxation.
LITTLE KNOWN FACT:
Let’s say the short sale is granted, buyer and seller agree to the terms. Georgia law allows mortgage companies to pursue homeowners in court for a deficiency for unpaid debt. So even if a homeowner completes a short sale, there is the possibility of legal action in the future for the mortgage company to try for more money, if the “demand letter” includes such verbiage. HOWEVER-if the mortgage company sends a 1099 to the homeowner after closing, they have given up the right to sue for a deficiency!!! The mortgage company either goes for recovery of the balance through a judgment or writes off the debt and sends a 1099.
For more information Contact:
Christy Cole, Short Sale Specialist
schristycole@gmail.com
Direct 678-300-3756
If you are interested in Henry County Real Estate Click Here: Henry County Real Estate
If you need assistance on a Henry County Short-Sale, Chick Here: Henry County Short-Sale
Atlanta Mortgage ♦ Atlanta Refinance ♦ GA Mortgage
November’s GA Realtor® of the Month
Cindy Young – Keller Williams Realty
Cindy Young reflects the standard of excellence, successfully selling properties for her clients year after year. When Listing or Buying property with Cindy Young, you receive extraordinary benefits: Commitment… Service… Integrity… Experience… Skill… Effectiveness… Advanced Techniques… Extensive Knowledge of the Marketplace… Financial Counsel, ongoing Communication and Personal Attention.
Cindy Young is ready to serve you as an experienced and knowledgeable Consultant in the Atlanta Market. She successfully negotiates and closes real estate transactions for every client year after year. Her diverse and successful background in leadership formation, marketing, promotions, and fundraising make her uniquely qualified to help you find your dream home by providing a superior level of professional services every step of the way. You’ll be assured of comprehensive service from an agent attuned to your needs. When you work with Cindy, you are educated every through every step of the transaction, thereby managing expectations while working through the complexity of any transaction of selling and buying a home.
To further differentiate herself from other agents, Cindy Young is building a reputation reflective of her commitment to live values, business ethics, professionalism, integrity, honesty and an unwavering commitment to the client. You can expect she will educate the consumer and use state of the art marketing…and is always up to date on current market conditions that could affect you.
Cindy Young understands the emotional and physical factors involved in relocating a family from another city or just another area of town. Her team’s expertise, and available resources as relocation specialists, provides you with the tools and market information you need to make your move flawless. She is also a trained negotiator and strategist ensuring that her clients will garner the best possible terms and value in their real estate transactions.
Cindy Young, REALTOR®
Recipient of Top Individual GCI Award, Sales 2009 for Keller Williams, Rawls Group
(cell) 678-231-0557
(email) cy@cyrealtygroup.com (website) www.CYRealtyGroup.com
(Luxury site) www.atlhod.com (short sales website) www.AtlantaShortSales.info
Million Dollar Club Member
Buying a Georgia Foreclosed Property
Guest Blog Courtesy of Leigh Clack with Neel & Robinson, LLC
When a foreclosed property is being resold by the lender, the buyer is usually asked and often forced to close with the law firm chosen by the seller. Many buyers and their agents are starting to assert their wishes to close with their choice of attorneys.
Regardless of which attorney handles the closing, the buyers and their agent should always confirm the following when buying a foreclosure:
1. County and city property taxes
a. Confirm payment on the HUD if the current bill is out.
b. If paid prior to closing or “POC” (paid outside closing), ask for written proof.
c. Tax prorations – check the calculations, because the seller will not adjust the prorations later. If prorated on last year’s estimate, make sure it is reasonable and reflects any major changes such as the loss of homestead exemption.
2. Other bills not wiped out by foreclosure
a. City/county garbage and sanitation bills
b. Water bills on previous owners in the chain of title
c. Demolition liens and other government bills
3. Homeowner Association
a. Is there a mandatory HOA? (The seller bank may not know for sure; ask the closing attorney)
b. Has the HOA account been adjusted since the foreclosure?
c. Make sure the closing attorney has a written status letter from the HOA – get a copy at closing.
d. Is the seller paying the dues from the foreclosure date up to the closing date?
4. Owner’s Title Insurance
Never buy a foreclosure without title insurance – the seller does not guarantee clear title (just insurable title) and will only sign a limited warranty deed to the buyers.
Leigh Clack, Partner and Managing Attorney
Neel & Robinson Attorneys at Law, LLC
22 Lenox Pointe, Atlanta, Georgia 30324
Office: 404-705-3690 Fax: 404-705-3697
lenox@neelandrobinson.com
October’s GA Realtor® of the Month
The Bell-Holcomb Team – Diversified Marketing
It is no secret; we are experiencing one of the toughest Real Estate Markets in history. During this challenging time it is more important than ever to have agents you can trust. The team of Julie Bell and Selena Holcomb has over 18 years of combined experience and 100’s of successful transactions. The Bell-Holcomb team has successfully marketed new homes in Cobb, Paulding and Douglas Counties, as well as selling Short Sales, Foreclosures and Resale’s all over the Metro Atlanta area. No matter what your housing needs, The Bell-Holcomb team is ready to serve you with integrity, honesty and professionalism.
Please check out our communities on the web:
•Victoria Heights •Macland Township •Berkleigh Trails
Julie Bell 404-790-4680 Selena Holcomb 678-313-6234
Qualifying for a Georgia Home Loan
Guest Blog Courtesy of Tina Fountain of Tina Fountain Realtors
What can You Expect when Applying for a Georgia Home Loan?
One of the most frequently asked questions from home buyers of today is: can I get approved for a home loan? Today’s credit environment is decidedly different, with stricter guidelines than ever before. Up until 2009, home buyers could have expected easy loan approval, no-money-down loans, interest-only loans, piggyback loans and sub prime loans, just to name a few. Credit was flowing freely, and homes were ours for the taking. However, as we all know and witnessed, this credit bubble and housing bubble finally blew and left in their wake a complete fiasco, complete with foreclosures, government bailouts and new credit regulations and laws.
Subsequently, applying for a home loan today can be quite difficult for some home buyers. If you are new to the home buying game or if you simply haven’t bought a home for several years, there are some things you should know:
- Don’t expect a loan without a down payment – Many home buyers were quite spoiled with “no down payment” loans in the past. However, because of the tight restrictions on credit, home lenders are being more cautious about loans that they consider to be risky – and a home loan without a down payment can be quite risky for the lender.
- Don’t expect a home loan with sub par credit – Simply put, only those home buyers who have good credit can expect to secure an Atlanta home loan. One of the best things you can do before applying for a home loan is to order a copy of your credit report. Then, take the time to clear up any discrepancies or errors. Pay close attention to your credit score, as most home lenders are looking for a credit score of 620 or higher when it comes to home loans. In order to qualify for the best rates, your credit score will need to be over 740.
- Don’t expect a home loan if you have a high debt-to-income ratio – One of the many problems that were discovered as a result of the home loan disaster is that lenders were loaning to individuals who were already bogged down in too much debt. As a result, lenders are now looking more closely at debt-to-income ratio, which is essentially a percentage of your debt versus your income. In other words, if you have too much debt you will likely not get approved for a home loan.
By taking the time to clean up your credit report and reduce your debt-to-income ratio, as well as save for a down payment, you can qualify for a competitive mortgage loan.
Tina Fountain is the Broker Owner of Tina Fountain Realtors. For more information visit tinafountain.com and search for all Atlanta real estate including homes for sale in Marietta and homes for sale in Cobb County.
September’s GA Realtor® of the Month
The Smyrna Team – Keller Williams Realty
The Smyrna Team specializes in listing homes in Smyrna, Georgia and working with buyers that are looking for Smyrna homes for sale. The Smyrna Team also holds the Certified Distressed Property Expert designation. This designation provides the team with the knowledge they need to have to work successfully with short sales on both the buying and selling side whether the home is in Smyrna or the surrounding areas. If you are looking for a team that understands the ins and outs of short sales then look no further. You can access our short sale website by visiting www.thesmyrnateam.com .
Eddie Hudson is a Smyrna, Georgia native and has been selling real estate in Smyrna since 2001. Eddie specializes in working with sellers to get their Smyrna homes sold in the quickest time at the highest possible price. Tracy Gaudiano has lived in Smyrna since 1999 and has been providing unparalleled service to buyers looking for Smyrna homes for sale since 2004. You’ll love every minute of your real estate experience when you work with the Smyrna Team.
If you have any questions about Smyrna homes for sale or short sales, please don’t hesitate to contact us today.
Eddie Hudson & Tracy Gaudiano
770-874-6262
New Georgia Law Changes Property Tax Accessment Procedure
Guest Blog Courtesy of Leigh Clack with Neel & Robinson, LLC
Georgia recently passed “The Property Tax Assessment and Appeals Reform Bill” (Senate Bill 346) on June 7, 2010.
Highlights include:
1. Every property owner will receive an Annual Notice of Assessment and the right to appeal;
2. Every Notice of Assessment must contain the estimated property tax (in dollars);
3. Appeal period has been extended to 45 days;
4. Alternative streamlined appeal option for properties valued over $1,000,000;
5. Automatic taxpayer victory on appeals when government fails to respond within 45 days;
6. Requirement that all relevant sales, including distress sales, be included when determining Fair Market Value (FMV);
7. Requirement that only “current use of property” be used in determining FMV;
8. Taxpayer must be given access to all data used in determining FMV;
9. Sales price establishes FMV for next tax year.
Remember that a reduction in the assessment does not always reduce the actual bill. Other factors such as the millage rate, homestead exemption, and other exemptions will also affect the final tax bill amount.
Leigh Clack
Neel & Robinson Attorneys at Law, LLC
22 Lenox Pointe, Atlanta, Georgia 30324
Office: 404-705-3690 Fax: 404-705-3697
lenox@neelandrobinson.com
August’s GA Realtor® of the Month
The Dallas GA Home Sales Team - Prudential Georgia Realty
Dallas GA Home Sales Team – Prudential Georgia
Paulding County recently placed #8 for the fastest growing counties in the nation according to CNN. Paulding’s location on the outskirts of metro Atlanta and the recent market downturn has left Paulding without any local real estate agent offices from any of the major brokers. Enter the Dallas GA Home Sales Team. Comprised of top producing agents from Prudential Georgia’s newly-designated Douglasville/West GA office, the Dallas GA Home Sales Team brings big-city real estate technology combined with their local market knowledge to offer Paulding County home buyers and sellers the professional real estate services they need and deserve.
Backed by the power of the universally recognized Prudential brand, the Dallas GA Home Sales Team leverages their brand power and online marketing skills to assist beleaguered home sellers in this difficult market, bringing the most exposure possible to their listings. Buyers can search for Dallas GA Homes for Sale using their state-of-the-art website dedicated solely to the Paulding area. Utilizing the latest real estate listing technology, their new site offers the most information you will find anywhere about Dallas, Hiram, and all of Paulding. Featuring the area’s finest neighborhoods, buyers and sellers alike can easily view all of the available properties in any given subdivision with the click of a mouse. Paulding’s exciting Swim/Tennis communities such as Seven Hills and Vista Lake can be researched, as well as golf communities like Bentwater Golf Club.
Technology is a big part of today’s real estate market, but is useless without the knowledge and experience to utilize it properly. You may have heard that ‘real estate markets are local’ and it has never been more true than today. The Dallas GA Home Sales Team are professional Dallas GA REALTORS® who live and work in the local area. Their hands-on work in the local market give them a huge advantage over the typical agent who ‘does Paulding’ and travels in from Atlanta. Contact the Dallas GA Home Sales Team for professional local real estate advice you can’t find anywhere else.
Dallas GA Home Sales Team
Prudential Georgia Realty
770-891-3314
Georgia Home Buyers need a Professional Home Inspection
Today’s Guest Blog provided by GeorgiaHomePros.com
You’ve searched and found a home that fits your family. Now it’s time to make sure it’s safe, sound and will stand the test of time. You need a professional inspector working with only your best interest to determine the condition of the home. The naked eye usually only uncovers cosmetic items & minor repairs, IF it is visible to the naked eye. Many major repairs are not fully visible and you need a professional certified inspector who knows what signs of problems to look for. Even Georgia builders/remodelers have relied upon our, GeorgiaHomePros.com 5-star rated inspection service Did you know that foreclosures have no sellers disclosures? And, many short sales don’t either. This is now more than half the market that you will have no history on your home. Also, many homes are located in counties where codes were not enforced when they were built… Yes, even though you may not be in that scenario, the vast majority of homes have thousands of dollars in repairs to be made whether it be code violations, structural defects, latent defects, safety, health hazards or simple wear and tear
In a majority of inspections, you can have the seller repair the items or you can negotiate the repair moneys off of the price. Even the homes that did enforce codes when built,…the County inspector may have only spend 5-10 minutes if you’re lucky, at the home. How does that compare to our normal 3-5 hour inspection, 40+/- page report, w/a 500+ point checklist, summary & photos + repair cost estimates? It doesn’t. That is why it is so smart to get inspection during your due diligence period, to be fully informed PRIOR to closing, or if at all possible it is BEST to do prior to writing an offer. You will only pay hundreds for an inspection, but possibly save thousands and have peace of mind that your family is safe and you have not bought a money pit.
M.Scott Webb
Rated top 10% Nationwide
20+ Years Experienced Builder/Remodeler
770-893-2271
www.georgiahomepros.com
Georgia 203K Loans More Popular than Ever
Today’s Guest Blog Courtesy of Garrett Feis a HUD Approved 203k Consultant
FHA has a little known loan program called 203K. It is the governments answer to America’s deferred maintenance of existing housing stock. Most lenders will only lend money on homes that are in good condition or they require the borrower to make the repairs before the closing. Not so with FHA’s 203K. FHA allows you to purchase the home “AS IS” and gives you the money to get the repairs done after the closing, all in one 30 year fixed rate loan at current rates. Best of all, you won’t need to make mortgage payments until the renovation is complete.
Here are examples of what you can do with a GA 203K loan:
- Purchase a two bedroom one bath home and get the funds to make it a three bedroom with a nice master bath.
- Purchase a foreclosure that needs carpeting, a paint job and maybe a new kitchen.
- Purchase a home that is in perfect condition and remodel the kitchen and bathrooms.
- Purchase a home that is in perfect condition and finish the basement off into an “In Law” suite.
All of this and more is possible under 203k Guidelines. This loan program is almost limitless. You can purchase a standard stock home and make it into the home of your dreams.
This loan has become very popular the last two years due to the increase in foreclosed properties. These properties tend to be in pretty rough shape and usually need some help. A Georgia 203K loan is the way to get you where you want to be.
For more information on how a 203k loan can be right for you, contact:
Garrett Feis 404-925-7163
