What is an Arizona short sale?
You may have heard the recent buzz about Arizona short sales. In case you are wondering, here is a basic definition and description of the process. Basically, an Arizona short sale is the process of selling your property for an amount less than what is owed to the lender. Sounds easy enough, right? In order to carry out this process, your lender MUST consent. That means you can’t just get off the hook with your mortgage because it ended up being tougher than you expected. You have to be experiencing a legitimate financial hardship to get your lender to consent. There are hundreds of Arizona short sale specialists who can help you through the logistics of the whole process should you decide it is right for you.
Why Arizona short sale?
The main reason people short sale their homes is to avoid foreclosure. While a short sale doesn’t really do your credit any good, it does not diminish your credit or destroy your future buying power in the same way a foreclosure would. While your Arizona short sale
processes, you can continue to live in your home payment-free for a few months, giving you a chance to get back on your feet. It would be wise to use this time to pay off any other outstanding debts you may be facing.
The next question is always the same: Why on earth would a lender agree to such a thing? And, that question is legitimate. It seems absurd, doesn’t it? Selling your home for a price less than you owe the lender. It certainly doesn’t seem profitable (or even allowable) for a lender to do. But they do it…and often. Ultimately, banks are in the money business, not the real estate business. They don’t want your home, they want your money. So, if you short sale your home, then they do not have another home to sell or get rid of. Another reason a lender would agree to this is because the foreclosure process can be very expensive. Between closing costs, listing the home for sale, attorney fees, and any other home-buying and selling fees the banks would incur, short sale becomes a better option. It is a way for both the lender and the homeowner to make peace and break free of one another. The people who lend money are human, too, so they understand that sometimes even when you make the most honest and valiant effort to salvage your mortgage, it just doesn’t always work out.
IF YOU FIND YOURSELF IN A TOUGH FINANCIAL CIRCUMSTANCE AND YOU GENUINELY WANT TO AVOID THE DEVASTATION OF FORECLOSURE, IT MAY BE TIME TO CONSIDER AN ARIZONA SHORT SALE. TALK WITH YOUR LENDER AND FIND A REAL ESTATE AGENT WHO SPECIALIZED IN SHORT SALES TO SEE IF THIS COULD BE A VIABLE OPTION FOR YOUR SITUATION.