The recent economic changes in the last few years have had an obvious impact on the number of foreclosures in America and especially Arizona. As local real estate experts we appreciate the compounding changes in the market. Selling your home or property can create an overwhelming task to be completed, especially if you are facing additional financial hardships. That is why it is more important than ever to invest your time into our professional services so that we can work to ensure the transaction is successful. One of the ways we are beneficial is our knowledge with a short sale. Let’s look at a short sale from each perspective; the homeowner, the prospective buyer and the lenders involved.

As a homeowner a short sale can save you from foreclosure which can cause embarrassment, damages to ones’ credit, further economic challenges and takes a longer amount of time to recover from. It is not always the perfect scenario for a homeowner when we typically view our property as an investment. In the end, however, a short sale can relieve the burden tremendously as it typically costs no money and the mortgage is paid off. Bottom line the short sale causes a “break even” scenario in respect to what is left to be paid off on the home.

We’ve all heard that this is now a “buyer’s market” and although it is unfortunate for many, it is also true! There are bargains to be had especially for first-time homeowners and investors with capital. A short sale means the home is being sold for less than the cost of the home. Notice we didn’t mention value of the home but instead the cost of what owed on the home. But also be aware that now home values are being appraised at less than what the original buyer paid for the property. In short, short sales are still bargains to be explored for those searching.

Let’s start this final portion by stating that the bank has to first AGREE to a short sale on the home. After all, this action leads to lenders forgiving the remaining debt. In a declining market, however, lenders would rather see the property sold to a new homeowner rather than owning it themselves so that they can continue to collect interest. A foreclosed property will typically cost a bank additional funds as well and we all know how much they hate parting with money, especially now! A lender has a better chance of the property getting occupied faster and can continue to be a cash cow for the bank.

No matter the situation it is always best to do your research and find an agent that is skilled in working with short sales. There can be other cumbersome circumstances and all three parties mentioned above do not want to be led down a dark alley and be taken for their additional assets. Let us guide you through these processes so that you can make the best informed decision for YOUR situation. With our combined history in the real estate market we can assure you that the best step to take first is to call us for a consultation!

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