Advice for those looking into a Phoenix Short Sale

It can be a disheartening process to move out of your home and say goodbye to all of your hard work and dreams. However, it can also be a relief to be freed from a financial burden that was holding you back and forcing you to go even further into debt. A Phoenix short sale could make the process a little bit easier, but there are a few things you need to know about them first.

Once you have opted for a Phoenix short sale, you need to communicate with your lender immediately. Make sure a foreclosure auction hasn’t already been scheduled–otherwise, it could be too late. The first thing to do is to start gathering your documents. The documents needed to carry out a Phoenix short sale depend on the lender, but many require similar materials. Most of the time, you will need to provide a hardship letter that details the circumstances surrounding the short sale and talks about your decision and plan of action. Next, you need a signed, valid purchase and sales contract, an HUD-1 settlement statement and an estimation of proceeds to the bank or lender. Some lenders will require much more information, possibly pay stubs, bank statements, budget assessments, etc. Ask your lender what type of materials they require and be sure to follow their directions properly so as to get your short sale approved.

What else do I need to know about Phoenix Short sales?

While you, as the seller, will likely not make a profit on a Phoenix short sale, you will be relieved of the mortgage payment and financial burden. A short sale is much better than allowing your home to go into foreclosure because it does not wreck your credit or prevent you from making purchases in the future.

It’s also important to know that most lenders would not even consider approving a short sale if the homeowner is in the middle of a bankruptcy proceeding. Negotiating a Phoenix short sale between the two parties is prohibited in bankruptcy and is considered a “collection activity.”

One last thing to note is that most lenders are going to require a full appraisal of the home in the short sale package. Some may not want the full appraisal information, but all will need to know a value of the home in order to carry out the process and make the final decision.

This circumstance can be tough, but if you find the right Phoenix short sale professional to help you through it, it can be done. And what a relief to know that you are free from your bank and your mortgage payment and you have a clean slate for the time being!