ARIZONA SHORT SALE MOST FREQUENTLY ASKED QUESTIONS
We have 11 million American households under water with their current mortgage. Statistics tell us 7 out of 10 people foreclosed upon never contact a professional Realtor to assist them during their time of need. Banks continue to foreclose on properties in the state of Arizona. Real estate investors continue to purchase great deals at the Arizona Trustee Sales. We can assist you with your Arizona Short Sale. We have a team of experts standing by to get the most difficult questions answered by professionals in their field such as real estate law, tax and credit restoration.
WWW.ARIZONASHORTSALEANDBEYOND.COM
What is a short sale?
A short sale is an agreement with your mortgage lender to accept less than the total amount you owe on your home and allow the property to be sold. For example, if you purchased your home for $200,000 but now it is only worth $150,000 and you must move, you could negotiate with your lender to accept the current market value as payment in full.
How do you qualify?
Nearly everyone who is currently in a negative equity situation or behind on their mortgage payments can qualify for a short sale. Generally all the bank needs to see is proof of a financial hardship and a decrease in property value. Will I have to stop making my mortgage payments before the bank will approve my short sale? You do not have to stop making payments on your home in order for the bank to approve a short sale but it does help.
In some situations, such as a relocation, you may not need to miss payments for your lender to consider a short sale.
If I am doing a short sale am I in foreclosure or pre-foreclosure?
Not necessarily - a short sale is simply requesting the bank to accept a total payoff of your loan for an amount less than what you owe. You are only in foreclosure when you receive the foreclosure notice from the bank.
Can a short sale be completed if I have a second mortgage or home equity line?
Of course. The majority of people we work with have both a 1st and 2nd mortgage or a home equity line. In this situation the 1st mortgage generally approves an amount we are allowed to offer the 2nd and we negotiate between the two. The 2nd mortgage company is accustomed to taking a much lower payoff - generally less than 10% of the total loan amount.
Who pays the real estate commission, closing costs and past due taxes and HOA dues?
Your lender will pay all of the closing costs, commissions and any outstanding HOA assessments or past due taxes when the closing takes place. Sellers are never required to come out of pocket on a short sale transaction.
Will I have to make repairs to my home?
Your property will be purchased in As-Is condition which means the buyer cannot request you to make repairs.
Why would my lender agree to do a short sale on my home?
When banks foreclose on a property it is a long and expensive process and generally means holding the property in their inventory as a non-performing asset. Banks have a limit to the amount of non-performing assets they want to hold. Once this limit is exceeded, they have strong incentives to get rid of the properties at discount prices. For a lender, agreeing to a short sale avoids many of the costs associated with the foreclosure process. Attorney's fees, delays from borrower bankruptcies, damage to the property, costs associated with resale, property tax, insurance, etc., must all be paid by the bank during a foreclosure. In a short sale scenario, the lender is able to reduce their loss by avoiding additional legal fees, repair costs and utility bills and often times selling the home faster and at a higher price.
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