Unfortunately, foreclosures have become a dominant force in Georgia’s housing market. Most homeowners have been impacted directly or indirectly by the current foreclosure epidemic. Whether it is the loss of a home, loss of value in neighborhoods due to declining value, increased difficulty with selling a home or neighborhood degradation due to vacant, unattended homes, the affects are far reaching.
It has never been more important to stay informed with what’s happening in your market. There are very important steps one should take when trying to avoid one’s own foreclosure, or trying to purchase a home which has already been foreclosed.
Pop Quiz! Do you know the following terms?
- Shadow Inventory – Homes which have already been foreclosed but have yet to be released back out to the market for sale.
- REO – Real Estate Owned. This means that the property has been taken back by the lender either through foreclosure, or Deed in Lieu
- Deed In Lieu – This is when the borrower voluntarily deeds the property back to the lender without going through the foreclosure process. Under HAFA guidelines, the debt would be marked “paid in full” through this process. You need to know if you’re lender is a HAFA participating lender.
- Cash for Keys – An agreed upon amount of money is provided to the borrower for moving expenses and/or establish another residence in return for returning the keys and property in the best condition possible.
These are a few of the terms and situations you’ll find throughout the foreclosure journey. Finding a real estate professional knowledgeable in these types of transactions can make the difference between an unpleasant experience or a successful outcome. Unless you are highly experienced in real estate transactions, don’t go it alone. Even if you have bought and sold multiple homes, it is still a good idea to seek advice to learn what you need to know for today’s changing rules and markets.
With that said, I am really looking forward to the day when I can take this page down and have a ceremonial “e-burning” of the information. Until then, I’ll be happy to answer any questions you may have with regard to your needs and goals in avoiding or purchasing a foreclosed property.