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Call Laura today to get more
information on listing your home for a short sale or to
buy a short sale through the short sale process.
What Is the Definition of a Short Sale in
Arizona?
A short sale is a real estate transaction in which
the sales price offered by a potential Buyer is
insufficient to pay the loan(s) owed on a property in
addition to the costs of sale and the seller is unable
to pay the difference. Simply put, a Seller owes more on
the home than the house is worth at the present market
value.
A potential Buyer can submit an offer to a Seller on
the home for thousands less than what is currently owed,
and through the process of a
Real Estate transaction,
the bank reviews the offer and makes a determination if
it will accept the offer and absorb the loss of the
difference owed.
For example, if your home is worth $200,000 in the
current market but you have a loan or loans of $250,000
then a short sale is a consideration.
Further Definition:
A short sale occurs when the sale price on a
piece of real estate is insufficient to pay off the
debts on the property. The primary reason for a
short sale is a drop in property values. When the
property owner is upside down in the real estate
loan, owing more than the current market value of
the property, a short sale is one way to liquidate.
Sellers view short sales as an alternative to
foreclosure. The federal government encourages
lenders to consider short sales, as they are less
detrimental to neighborhoods, compared to
foreclosure. For the lender, the short sale is often
less expensive than a foreclosure.
Before considering a short sale in
Arizona, the seller should read the "Short
Sale Seller Advisory", which is available as
a downloadable PDF file on the Arizona
Association of Realtor's website. The
advisory lists warnings, alternatives and
procedures for a short sale in Arizona. It
urges the seller to consult the advice of an
attorney, explains how to avoid predatory
scams, and recommends seeking the assistance
of an experience
real estate licensee.
Before listing a short sale, the seller
contacts her lender to obtain permission.
Before granting permission to consider a
short sale, the lender typically requires
the seller determine the current market
value of the property. A lender may consider
agreeing when property values have dropped
below the outstanding balance of the loan,
and the seller can no longer make payments.
Once a seller accepts a
buyer's offer, it
goes to the lender who accepts, rejects or
counters the offer.
When agreeing to a short sale in Arizona,
the lender might just be agreeing to release
the lien on the property, yet still hold the
seller financially responsible for the
deference between the final sale price and
the loan balance. The "Short Sale Seller
Advisory" urges sellers in Arizona to
consult with an attorney when negotiating
with a lender on a short sale. Should the
lender agree to forgive the unpaid balance
of the debt, get the commitment in writing.
Call Laura today to get
more information on listing your home for a short sale
or to buy a home through the short sale process.
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Laura Boyajian
Mobile: 602.400.0008
HistoricCentralPhoenix@cox.net
HomeSmart, LLC
5225 N. Central Ave. #104
Phoenix, AZ 85012
(602)
400.0008
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