Foreclosure rates continue to rise in most areas of the country and metro Atlanta has been one of the areas affected the most. And it is expected that this trend will continue for the foreseeable future.
The truth is there are life circumstances that can contribute to a family losing their home to foreclosure, many of which have nothing to do with the current economy. Divorce, job change or loss, illness, a death in the family, all are traumatic life changing circumstances.
Currently, many homeowners are “upside down” in their homes, i.e. they owe more than their home is currently worth. They need to sell due to an unfortunate life circumstance but cannot do so without having to bring cash to closing to settle their mortgage debt, which they are not in a position to do.
Given these realties, the demand for creative pre-foreclosure solutions has risen dramatically. And in an effort to avoid accumulating real estate and bad loans on their books, mortgage lenders have become more and more willing to work out a compromise on the pay off, a Short Sale, where the lender agrees to accept less than what is owed as “payment in full”. The difference in the impact of a Short Sale versus a foreclosure on a homeowner’s credit is significant.
Dale and I have recently completed extensive continuing education courses on Short Sales and have become members of a network of Realtors known as America’s Home Rescue in order to be able to consult with folks that may be affected by life circumstances that, through no fault of their own, may be facing foreclosure and need to sell their home.
In many instances, a Short Sale may be a viable solution but most homeowners are not aware the Short Sale is available to help them though their difficult situation.
Should you know of anyone that may be facing foreclosure or has been affected in some negative way by an unavoidable life changing circumstance, please consider referring them to The Randal Group.
We would be glad to consult with them about their options.
Thank you.
