ATTENTION: Homeowners with an FHA Insured Mortgage!
Short sales are a good alternative for you if for no other reason than HUD will not go after you for the deficiency balance.
There is a lot of discussion around what happens to the deficiency balance on a short sale. Most homeowners are being told that they will not owe any deficiency balance resulting from a short sale. Howevers, some lenders have hinted at attempting to collect the balance down the road. And of course there are federal and state laws that play a part in the process as well.
(Just in case you're new to short sales, the deficiency balance is the amount of mortgage debt that remains once a short sale transaction is closed. For example, the mortgage balance is $150,000. The short sale purchase price is $50,000. The difference of $100,000 is called the deficiency balance).
What lenders will do with this balance is the subject of many posts and is best left to a discussion with the seller's attorney. I do not proclaim at all to be a legal advisor. However, FHA Insured mortgages are the one bright spot in the short sale deficiency balance question. HUD will not come after you, Mr. Short Sale Seller.
Please reference Mortgagee Letters 2003-19 and 2008-43 for more information.
Sellers in South Fulton (Cascade, Camp Creek, Redwine, East Point, College Park, Hapeville, Sandtown, Fairburn, Union City, Palmetto) - STOP FORECLOSURE! Give our office a call to talk about a short sale. 404 923 4210 or 404 246 3210 for more information. We work with all banks and have relationships with Bank of America, GMAC Mortgage, Ocwen, and many more! Click here for more information!
Buyers, ask us about HUD Homes! We are an approved Selling Broker for HUD Homes! Ask about the $100 Down Program!
The Jordon Wheeler Group, 260 Peachtree St, Suite 2200, Atlanta, GA 30303
Office 404-418-8092 Cell 404-246-3210 Fax 404-991-3770