Atlanta Short Sales: The Facts
When a property is labeled as a “short sale” this means that the buyer is in default on their mortgage payments and has asked the lender to work with them in accepting less money than is owed on the current mortgage. 

Although the seller is still technically in possession of the property, it is the lender who will determine whether or not the home will sell. The lender will require the owner to submit a “hardship” application proving that the seller does not have the financial capacity to pay for the home or make up the difference in what the home might sell for versus what is owed. 

Once approved, the lender orders a BPO (broker price opinion) or an appraisal to determine what price would be fair for them to accept knowing they are going to take a loss.

Buying an Atlanta home that is labeled a short sale at a good price is possible, but generally not without some challenges. 

Typical issues you will encounter in negotiating an Atlanta short sale:

• Time for acceptance-Quite often, lenders can take 30 days or more to respond to an offer due to the approval process they must go through once an offer is received. In the meantime, all the other buyers are snagging up the good deals!!!
• Lack of firm pricing decisions- I have seen many homes listed at “incredible” prices and labeled short sales, only to find out that the price was never even in reason of being accepted by the bank.  The approval process can very frequently result in even “full price” offers being rejected.  Sellers and lenders are under no legal obligation to accept even a full price offer.  They can change their mind at any time and they often do.
• Sometimes the short sale hasn’t even been approved it was just the seller/agent may have been trying to just create interest and get an offer to see if the lender would act on it. 

In the end, this creates frustration for everyone from the lender to the buyer, and the purchaser.  A lot of time and effort goes into something that a good portion of the time will never be put together.

Be wary of something that looks too good to be true and make sure you deal with a realtor that understands the short sale process. Having representation doesn’t cost you a thing, but it could end up saving you a fortune.