Short Sales in Arizona Real Estate
A short sale is a viable alternative to foreclosure or bankruptcy proceedings. When a homeowner owes more on a property than its current market value, a short sale may be an option. Obviously, when a lender approves a short sale it means the lender will accept less than the total mortgage balance due. First, negotiations are entered into with the homeowners lender(s) to accept less than the full balance of the loan at the future closing. Then, the buyer closes on the property and the property is “sold short.” These negotiations are often accomplished with the aid of a experienced Realtor on the homeowners behalf. Historically, it was rare that a bank or lender would accept a short sale. However, due to the overwhelming changes in the Metro Phoenix real estate market, lenders have become much more flexible when it comes to these transactions. Many organizations have instituted policy changes that make the chance of getting a short sale approved even higher!
Why would a lender accept a short sale?
Banks are in the business of lending money, not the landlord business. Contrary to popular belief, the lender is not lying in wait, eager to pounce out and take their home, especially in Phoenix’s declining real estate market. In fact, a foreclosure has far-reaching financial and regulatory consequences. On average, it costs a lender $50,000 to $80,000 to foreclose and dispose of the average median-priced home. Not to mention the opportunity costs associated with having assets tied up in the house, instead of liquid on their books. So, a short sale is a way for banks to keep illiquid assets off their books.
To start the short sale process, a homeowner should seek the services of an experienced Realtor who regularly works with banks to help homeowners. There are relatively few Certified Distressed Property Experts (CDPE) in the nation and a CDPE is one of the best assets a homeowner has to complete a complicated short sale!
Remember, there are NO FEES involved for the homeowner in a short sale, the bank pays all fees including closing costs, late fees and even attorney fees!
If you would like to try to avoid foreclosure and explore other options, give us a call at 480-497-1649. Reach out right away, before time runs out!
Metro Phoenix Arizona short sale and foreclosure homes can be found throughout the Valley of the Sun. Including Phoenix foreclosure and short sale homes, Scottsdale short sale and foreclosure homes, Chandler short sale and foreclosure homes, Gilbert short sale and foreclosure homes, Mesa short sale and foreclosure homes, Tempe short sale and foreclosure homes, Queen Creek short sale and foreclosure homes, Maricopa short sale and foreclosure homes, Ahwatukee short sale and foreclosure homes, Apache Junction short sale and foreclosure homes, and Gold Canyon short sale and foreclosure homes.