Sunday, August 23, 2009
When it comes to real estate in the Phoenix Arizona area, many who are facing foreclosure decide to learn more about short sales, and how they work. No one wants to lose their home, but when financial worries are steadily increasing due to the economy, sometimes we feel we have no choice. This article will give you a clearer picture of the process, so that you may make an informed decision.
When it comes to short sales, you should speak with your real estate agent who will help you with any questions or concerns you may have. You know that foreclosing on a home will ruin your credit, and cause you embarrassment. Add to that the fact that you most likely will not be able to purchase another home for several years, and it simply is not an attractive option.
Here are some of the pros and cons of short sales:
You can purchase another home in only two years, instead of waiting five years. This is probably the biggest motivating factor for most people when choosing a short sale.
Your credit won't be as badly damaged.
You may avoid the embarrassment and stress of the process for you and your family. A short sale as opposed to a foreclosure can also help your neighbors. One less foreclosure in the neighborhood will help the community.
Sometimes there may be a lengthy wait for the bank to respond to the offer.
There may be many potential buyers taking a tour through your home to see if it is something they are interested in, so keeping your house straightened and cleaned constantly may be a chore.
Although it most likely won't be a problem, there is no guarantee that the lender will accept the buyer's offer.
The paperwork can be frustrating. The bank will ask you for personal records, other bank accounts, assets and liabilities, etc. This is done in order to prove your hardship, and additionally they may want a hardship letter in writing from you.
If you don't mind a little extra work, this may be a way for you to avoid foreclosure and all of the nasty things that come with it. Money worries are a huge concern recently, and many are facing the possibility of losing their homes. Before you make a final decision, speak with a reputable certified distress property Phoenix realtor about how short sales may be the best option for you.
Find your Phoenix Arizona Property at Cactus Country Arizona Homes & Properties
Sunday, August 2, 2009
Phoenix Homeowners: How Short Sales Can Help You Avoid Foreclosure
The recent downturn of the economy has affected many homeowners in a very negative way. In Phoenix, the
housing market is such that many are facing foreclosure. Short sales can help you avoid this so that you don't
risk ruining your credit. This article will give you more information in order to help you make a smart decision
concerning your home and your credit.
Of course the best solution is to obtain the services of a reputable Arizona realtor certified in distressed
properties to help guide you through the process.
Many areas dealing with real estate are confusing to someone who has not dealt
with these types of issues before, but much stress and time can be saved by getting
There are numerous costs involved in foreclosure. If you live in the Phoenix area, you may want to consider a
short sale if foreclosure is looming in your future. What this means is that the lender, usually the bank, will agree
to accept less than what is owed against your home. Banks generally prefer to work with real estate agents,
because they have the ability to help minimize the banks losses during the process. It is also very beneficial for
the home owner, as the
process and paperwork is mind boggling, not to mention time consuming. You need
the professional that is actually trained in the process and committed to helping you
save your family from foreclosure
You may wonder why a lender would often prefer a short sale rather than going through the foreclosure
process. The costs involved with foreclosure are tremendous. After you consider legal fees, repairs to the home,
the eviction process and the actual foreclosure itself, these costs can very well exceed the actual value of the
home. An experienced Phoenix realtor can save much time and expense for you as the homeowner, as well as
the bank. It simply makes everything as stress-free as possible for everyone involved.This of course only
happens if the realtor you are working with is trained in this area of real estate
and you are willing to be pro-active in making sure your agent has every statement
and /or documents required from you.
With a short sale, the listing price is determined by the owner and listing agent. The essential difference between
this and a normal listing is the time constraint. A competitive price must be chosen based on present market
because there is limited time before a possible foreclosure sale. While these types
of sales do affect the homeowners credit, it does not have near the devastating impact as foreclosure.
In the Phoenix area, the process is fairly simple. You, as the seller, and the listing agent decide upon an
agreeable price, which should be close to market value. When an offer is submitted and the seller agrees,
necessary paperwork is submitted to the lender for approval If all is agreed upon and the lender determines the
price is sufficient, the transaction closes pretty much as normal.
It is important to emphasize once more that all the statements etc must be presented
to the lender to help them make that informed decision that you are hoping is in agreement
with your plan.If you are a homeowner facing the possibility of foreclosure, talk to a reputable Arizona realtor
today about how a short sale may benefit you.