What is a Short Sale?
A short sale is the process by which a homeowner can sell a house for less money
than he actually owes on the mortgage(s). This is done by the buyer or investor
providing proper documentation to the mortgage lenders to convince them to reduce
the mortgage balance to allow the sale. The mortgage lender (or bank) actually
takes a loss on the mortgage because the value of the home has fallen below
the mortgage balance AND the homeowner is in a poor financial condition that
will not allow him to continue to pay on time. If the bank approves the discount
on the mortgage, the home can be sold for a lower price without the seller having
to come up with cash to cover the shortfall, and the mortgage is satisfied and
the foreclosure process stops.
Why would a bank or mortgage lender want to do a short
sale?
Banks do not want to own real estate, they want to lend money and collect interest.
When a bank takes a property back via foreclosure, it is a long and expensive
process and often results in holding the property in their inventory as a non-performing
asset. Banks have a limit to the amount of non-performing assets they want to
hold. Once this limit is exceeded, they have strong incentive to get rid of
the properties at discount prices. For a lender, doing a short sale avoids many
of the costs associated with the foreclosure process. Attorney fees, delays
from borrower bankruptcy, damage to the property, costs associated with resale,
property tax, insurance, etc. all must be paid by the bank during a foreclosure.
In a short sale scenario, the lender is able to cut its losses by getting rid
of the property faster. Again, this is particularly true in Arizona right now,
not only because the real estate market is so slow, but also because the Arizona
foreclosure rate is high.
How can I get started?
Getting started is easy!Contact
us today to sell your house. Pick up the phone and call 480-776-5231
TODAY for free information that can help
you and your family. Do it now, don’t delay. Do not wait. The short sale
process can be long and you don't want to run out of time before the foreclosure
auction. We will review your information, determine if you are a good candidate
for a short sale, and contact you with the appropriate paperwork. Remember,
once you return the paperwork to us, it can be 30-60 days for a short sale to
get approved. Fill out and return the paperwork as quickly as possible for your
best chance at approval.
