What does Short Sale mean? 

A real estate short sale, or quick sale, is a negotiation between a homeowner and their mortgage lender for the lender to accept less than they are owed for an outstanding loan.   Given what has happened in the Phoenix area with growth over the past several years and now the sharp downturn we have experienced.   Many homeowners, particularly in the faster growing outlying communities are under water, their property values have fallen significantly and they now owe more than the property is worth.  A short sale occurs when your lender agrees to accept a lower price on your home than the current mortgage balance, provided you meet the lender's requirements and have a qualified buyer.  To prove your case, you'll need to spend some time on a cover letter explaining your hardship and provide full financial disclosure; the original purchase contract; a balance sheet of your income and expenses; asset statements, proof of income; bank statements; two years of tax returns; and a professional who knows the ropes.  Our REALTOR’S are trained in handling these types of Sales and in counseling our Clients as to what might be the best approach given their individual circumstances.  HAFA and HAMP are also items to be considered as new programs which are being introduced by the Banks to address these current issues.

The best approach is to schedule a meeting with one of our Agents and review the current market conditions and the individual Client situation and to determine the best approach in each case. We always recommend that the Client seek Tax and legal advice on the Short Sale as there are consequences in each case which must be factored into the Client’s decision.  There is no right answer for every individual; each case must be reviewed for the best approach.  There are reference documents such as the Short Sale Advisory and AZ Foreclosure Guide  which we will also review with each Client to assist them in reaching an educated decision.  Call or email us today to schedule a confidential interview to review your situation.