Facing Foreclosure? Here’s the Smart Way Out: Georgia Short Sales Explained

Jul 9

3 min read

Foreclosure can feel overwhelming, but it’s not the end of the road. In fact, there’s a strategic option that could help you avoid foreclosure, protect your credit, and give you a fresh start: the short sale. If you’re a Georgia homeowner in a tough financial spot, this guide breaks down what you need to know—and how to take action before it’s too late.

What Is a Short Sale?

A short sale happens when you sell your home for less than what you owe on your mortgage, with the lender’s permission. It’s a proactive alternative to foreclosure that can minimize damage to your credit and your financial future.

Instead of walking away from your home and facing foreclosure, a short sale lets you work with your lender to settle the debt for less than the full amount owed.

Why Consider a Short Sale in Georgia?

Credit Protection: A short sale typically has a smaller impact on your credit score than a foreclosure.
Control: You stay in control of the sale process instead of letting the bank take over.
Faster Recovery: Many people can qualify for a new mortgage sooner after a short sale than after a foreclosure.
Dignity: Avoid the public process and emotional toll of foreclosure.

How Short Sales Work in Georgia

Georgia is a non-judicial foreclosure state, which means the foreclosure process moves quickly. Acting early gives you more options.

Here’s the step-by-step breakdown:

Prove Hardship: You must show the lender you’re facing genuine financial difficulty (job loss, divorce, medical bills, etc.).
List the Property: With the help of a qualified real estate professional, you’ll list the home at market value.
Receive Offers: A buyer submits an offer, which is subject to your lender’s approval.
Submit Short Sale Package: Your real estate agent submits financial documents, a hardship letter, and the offer to the lender.
Lender Review: The lender reviews the package, orders a valuation, and decides whether to approve the sale.
Deficiency Waiver: In Georgia, it is crucial to request a written waiver of deficiency to protect yourself from future collection efforts.
Close the Sale: Once approved, the sale is completed and your mortgage debt is settled—often for less than you owe.

Will I Still Owe Money After a Short Sale?

In Georgia, unless you obtain a written deficiency waiver, your lender could legally pursue you for the remaining balance. This is one of the most important aspects of the short sale process.

A qualified real estate agent will negotiate on your behalf to ensure that you are fully released from the remaining debt, whenever possible.

Short Sale vs. Foreclosure in Georgia

Short Sale	Foreclosure
You sell the home	Bank seizes and sells home
Less damage to credit	Major credit hit
Possibility to buy again sooner	Longer waiting period to buy again
Chance to negotiate deficiency waiver	Lender must file for deficiency in court (strict 30-day rule)

What Should You Do Next?

If you’re falling behind on payments or see trouble ahead, act fast. In Georgia—where foreclosures can move swiftly—time is not on your side. A short sale could be the solution that saves your credit, your finances, and your peace of mind.

Let’s Talk.

If you’re facing the possibility of foreclosure, I can help you explore all of your options, including a short sale. With nearly a decade of real estate experience and a strategic, compassionate approach, I’ll guide you every step of the way.

✨ Contact Kereen Henry today for a private, no-obligation consultation. Your fresh start begins now.