As Atlanta and the State of Georgia enter the fifth year of the residential mortgage meltdown, one would hope that information about the options available to troubled borrowers would be widely available. Unfortunately, based on the calls received by our office, borrowers seem no better educated than they were in 2008.
Three factors figure heavily in the dearth of useful information available to borrowers. First, both the lenders and the federal government have been guilty of continually changing the rules of the game when it comes to modifications and short sales. Second, the internet is awash with information ranging from incomplete to dangerously misleading, and, too often, borrowers are unable to discern what is actually useful.
While the first two factors are problematic, the greatest challenge faced by a homeowner seeking information on a short sale is locating information specific to their state. The laws regarding mortgages are almost entirely controlled by state law. Thus, there are 50 different sets of laws which might govern the circumstances faced by a particular borrower. While we cannot provide aid for those living in 49 states, this series of articles will seek to educate Georgia citizens on how they might navigate the perilous waters surrounding their troubled loan.
Tomorrow we will discuss a common question. How will a short sale impact your credit score?