Thursday, February 18, 2010

Arizona Homeowners: Understanding The Short Sale Process

Are you a Phoenix, Scottsdale or Glendale homeowner who is upside down in your mortgage? You owe substantially more than your home is worth, and paying the monthly mortgage payment is something you can no longer do. A short sale may be one option you want to consider; although you have likely heard the term, you don't really understand what it means or how it works. This article will explain the process, so that you can make an informed decision whether or not a short sale may benefit you.

The weakened economy has affected many people. Jobs have been lost, plants shut down, and hours reduced. The market value of homes has taken a nose dive as well. Now, you may have fallen on hard times and you simply can't afford your home anymore. In Arizona, short sales have helped many home owners avoid foreclosure and completely ruining their credit. The process can be lengthy, but with the assistance of a reputable Certified Short Sale Phoenix realtor you can be sure it will go as smoothly and quickly as possible.

Here is an overview of the short sale process:

1. As the homeowner, you contact the Short Sale Realtor to discuss whether a short sale may be possible, and to learn how their process works for completing the sale.

2. You issue a letter giving permission for the Realtor to have access to private information about the property or loan.

3. Your lender will review documentation concerning the short sale, which indicates the proposed selling price, balance remaining on the loan, and itemization of all expenses, fees, realtor commissions and any other closing related expenses.

4. You will be required to submit a hardship letter, which explains in detail why you are having financial difficulties. This could be a death in the family, divorce, loss of job, etc. The lender will want to validate your hardship by reviewing your investment and bank accounts, paycheck stubs and other financial information.

5. One reason you want an experienced Short Sale Arizona real estate agent is that the lender will want an opinion on the condition of the home or property, and the market value of homes comparable to yours. The lender also insists that the property is listed for sale with a realtor.

6. Your lender will then review the purchase agreement in order to confirm that all amounts are within reason and that commissions due to the realtor is acceptable.

You can see that the process is a little complex, which is another reason you need an Arizona realtor with experience in the short sale process. This helps make the process simple, and the realtor can handle much of the work for you. Don't be forced in to foreclosure; it will adversely affect your life for years to come. Contact a seasoned professional now, and find out if a short sale can help you get out from under the huge debt that is hanging over your life.
Maureen Karpinski
Find your Phoenix Arizona Property at Cactus Country Arizona Homes & Properties

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