Atlanta Georgia Foreclosures

The number of foreclosed homes in Atlanta Ga is breathtaking. While they do present a problem to the broader market in general, they could be a great opportunity for you to buy Atlanta real estate at a bargain basement price.

Technically speaking a foreclosure occurs when the lender repossess the property due to default on the mortgage loan or home equity line of credit. Foreclosed homes are then put up for auction in an attempt to quickly recapture the lenders lost investment. The location of the auction is found in the county newspaper in an ad that the lender must post. Usually the auction is in or even on the steps of the county court house. The opening bid for a property is the outstanding debt amount. Most foreclosed homes in Atlanta are not bought at auction due to several reasons- few finance options exist to buy a home up for auction and most people don't have that kind of money available, the home is not worth the opening bid price, and it can be difficult to know exactly what you are buying because access to the property may be limited by the lender. If the home does not go at auction the property is then a REO or Real Estate Owned, which basically means bank or lender owned. From there the bank lists the property with a realtor of their choice and it is now the foreclosure most of us are familiar with. At this point the bank wants to remove the property from their books as quickly as possible which is where new buyers benefit from extremely low prices.

Short Sales in Atlanta

Short Sale is another term you have probably heard recently. A short sale occurs prior to a possible foreclosure and is the sale of the home for less than the loan amount. The home owner realizes they may default on their loan and contacts the lender. If the lender is willing to work with the home owner typically they prefer to modify the loan rate and or terms to keep the home owner in the property. If that fails or it looks like a foreclosure may be unavoidable the lender may authorize a short sale. The home owner offers the real estate at a price less than the mortgage amount and hopefully finds a buyer. If successful the lender takes the proceeds from the sale and settles the debt. The lender and home owner both benefit by avoiding a foreclosure on the property. In Atlanta short sales represent a small portion of sales relative to foreclosure sales but may increase as banks look for ways to stem the red ink on their books.

Check out my Buyers page to learn about some special considerations when buying a foreclosure. Contact me if you are interested in pursuing a short sale for your Atlanta home. Searches here access both the FMLS and MLS real estate listings. Or let me find you a home by signing up below!

METRO ATLANTA FORECLOSURE SEARCH

ONE CLICK CITY FORECLOSURE SEARCH