Short sales are not the same as Foreclosures in Arizona--Beware! Avoid the pitfalls of a Short Sale in Arizona. You must get a full written "Release and Satisfaction" of your loan or your could owe thousands.
Sellers before doing a Short Sale, consider a Loan Modification: Short Sale Transactions-What you need to know. A real estate short sale is when a home owner sells their property for less than what they owe on the mortgage, and the lender gives their permission to do this by forgiving the difference and/or releasing the mortgage lien on the property. Short sales are very common in much of Arizona because of negative home ownership equity due to the steep decline in house values. Sellers preparing for a Short Sale: To be successful at persuading your lender that you qualify for a short sale, your hardship package and the supporting expense budget and income statement must be prepared and documented in such a way as to prove your case. Unfortunately, not all agents are adequately trained in loan workouts, cash flow, asset analysis, and financial presentations. That is why less than 35% of all short sale succeed in being approved before going to foreclosure. Sellers, if you are selling your home as part of a short sale transaction, make sure to negotiate for a release and full satisfaction of the mortgage/deed of trust/ home equity loans etc. from your lender(s). Even in Arizona, lenders may be able to wait a year or two for you to improve your financial situation, and then file a deficiency judgment against you to try and recover the money that you still owe them. The only way for you to avoid this risk is to have the lender(s) not only release the mortgage lien, but also agree in writing to a full satisfaction of the mortgage. Your first step should be to consider the Home Affordable Modification Program (HAMP) by submitting a complete “Initial Package” to their mortgage company. Click Here to REQUEST A HOME AFFORDABLE MODIFICATION (HAMP) Please contact me to explore your other options. As Short Sale should be considerd at the same time you investigate options to modify or refinance your loan. Please call for a free no-obligation assessment of your financial circumstances. I have 30 years experience as a financial consultant. There is no out-of-pocket cost for my services. If you decide a Short Sale is right for you, my fee is paid from the proceeds at closing.
If you’re facing foreclosure, don’t panic: Take steps right now to save your home or at least lessen the blow of its loss.
Foreclosure is just a one-time event—with discipline and perseverance, you can get a mortgage and become an Arizona homeowner again.
When facing foreclosure, the first step is to get in touch with your lender to discover your options. Your options include loan restructuring your loan, doing a short sale, providing a deed in lieu of foreclosure, cash-for-keys, foreclosure, and voluntary bankruptcy. Know your options in Arizona.
A short sale is far from hassle-free, but it’s a better alternative than foreclosure.
Facing foreclosure and you just want it over with? The deed in lieu of foreclosure may be a good alternative.
Working with your lender to restructure your loan to have a fixed interest rate, lower payments or find a lower interest cost can address pending foreclosure.
Before considering a Short Sale determine if you can get your loan modified and it it make sense in your case. A Home Affordable Modification may provide you with mortgage payments you can afford.
The Making Home Affordable program offers at-risk homeowners a chance to modify mortgages to avoid foreclosure on their homes.
The Making Home Affordable program offers financially stable homeowners the chance to refinance mortgages to lower rates.
With foreclosure rescue scams widespread as more homeowners fall behind on mortgage payments, be smart if you seek help.
Home equity loan and refinancing scams can cost you more than money—these scams can cost you your house.
Renting out your house can be a smart financial move, as long as you calculate your costs carefully.
The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief.
Foreclosures/ Short Sales and how you handle them will have long-term credit score implications.
Learn about the Short Sale paperwork and the steps your agent should follow.
How to buy a short sale home successfully.
