An Arizona Real Estate Short Sale of a property, in its simplest form, is the process of selling your property for an amount less than what is owed to the lender, with the lender's approval of the sale.  If you are looking for "Realtors That Do Short Sales", you have come to the right place.

This process is generally used to prevent Arizona foreclosure, and a homeowner can qualify for an Arizona short sale if they have a financial hardship, and when their property is worth less (or can only sell for less) than the amount owed on the mortgage to the bank.

Many homeowners purchased their houses with adjustable rate mortgages, interest only loans, and even negative amortization loans. These home loans don't provide for any payoff of the principle balance, and the monthly mortgage payments fluctuate and/or increase over time. Adding to these increasing monthly payments are property taxes and homeowner insurance.

Other homeowners have lost jobs, had death in the family or other unforeseen situations that have had devastating affects on their financial situation.  With their financial situation worsening, and the declining housing market making near impossible to sell the traditional way, more and more homeowners are turning to the Arizona Real Estate Short Sale as a viable exit strategy!
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The result of a Foreclosure in Arizona is the bank taking your house. Not only will you lose your house, but the lender can get a judgment against you for the arrearages you owe plus their costs for the Arizona Foreclosure Auction, this is called a deficiency judgment.   In Arizona, we are an anti-deficiency state, so they can only come after you for a deficiency if you did not use the borrowed money to purchase or make improvements on your home.  For instance, if you took out a mortgage loan to buy a house, you are protected (http://www.azleg.state.az.us/ars/33/00814.htm), however, if you took out a HELOC (Home Equity Line Of Credit) and went shopping for clothes with the money, you could be at risk!
Next, if you let your house go to foreclosure, your credit report will be in terrible condition for many years to come. Future lenders will see your Foreclosure, and it will be very difficult to obtain any other kind of credit, car loan, or even rent a home. There is no upside to Foreclosure.  IT SHOULD BE AVOIDED AT ALL COSTS!

 

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Completing an Arizona Short Sale WILL STOP ARIZONA FORECLOSURE, but it also has its negative impact on your credit report. Since you are not making any payments on your mortgage, your credit report will reflect late payments on mortgage loan, lowering your credit rating by 100 to 200 points (there are ways of repairing your credit later…we use www.GenesisCreditGroup.com). 

The IRS allowed the difference between the mortgage balance and the amount realized from the short sale to be taxable as income despite the fact that the homeowner never saw a dime of it.   So for instance if you make $60,000 that year in salaried income, and you short sale your house $50,000 and your lender 1099’s you, it could look like you earned $110,000 to the IRS.  There are ways out of it so contact your accountant and visit http://www.sellquickforcash.com/shortsale.htm for more info.

There is new federal legislation called the Mortgage Forgiveness Debt Relief Act 0f 2007 that just went into effect on January 1st, 2008. The new act essentially eliminates this problem if it is your primary residence.  Unfortunately if you are short selling your investment property, this act might not protect you!  Consult a tax or legal professional to see if you qualify!
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The best time to start the Arizona short sale process is before you fall behind on payments, but anytime is better than not doing anything at all.  We have successfully completed Short Sales on properties that were scheduled for auction within two weeks (we were able to get the lender to postpone the sale for 30 days!)

For the lender to complete the Arizona Foreclosure Process takes time, approximately 7 to 10 months. It also takes time to complete a short sale (typically 2-6 months). Trying to start an Arizona Short Sale at the last minute could cause the lender to foreclose on the property prior to the completion of the Arizona Short Sale unless you negotiate a postponement of sale.
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The lender has to incur expenses to complete an Arizona Foreclosure and take the property back. These expenses include attorney fees, court fees, and the lack of income from your monthly payments. Lenders also face unforeseen losses from damage to the property, vandalism if the property is vacant and then the additional costs of selling the property. Along with the expenses comes the risk of the property depreciating further, and having to hold the property on the books for an undetermined amount of time.  Having a non-performing asset on their books prevents them from lending out more money that will produce a return.  Plus, banks are not in the business to own real estate.  They have to take back, inventory, and then hire a Realtor to list the property for retail on the open market.  We all know how horrible the real estate market is right now and therefore they could end up holding the property for many months, and then fire selling it for a loss anyways!

In many instances, an Arizona Short Sale is less expensive than the Arizona foreclosure process so lenders choose to cut their losses early.  By hiring a successful Arizona Short Sale Realtor, you will improve your chances of getting your Arizona Short Sale accepted by the bank(s).
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Remember the reason a lender will approve an Arizona Short Sale is because it will benefit them, not you!  The lenders need to know that if they don't approve the short sale, they will have to Foreclose on the property and that the sale is more cost effective than foreclosing.

Every Arizona Real Estate Short Sale begins the same way with the building of a Short Sale packet.  The lender(s) need certain documentation and a proof of hardship in order to complete a Short Sale request.  Below is a list of items commonly found in a Short Sale package:

• Hardship Letter.  A handwritten letter explaining the borrower’s situation and requesting a Short Sale.  It should describe why the borrower cannot make their mortgage payments and their fear of possible foreclosure.  It should be a plea for the lender to consider a Short Sale!
• Two Years Tax Returns And W-2’s.
• Letter Of Authorization (LOA).  This gives your Realtor (Cody Sperber)  or chosen Investment Company (http://www.SellQuickForCash.com) authority to talk with your lender(s) on your behalf.
• Two Most Recent Bank And Retirement Account Statements.
• Two Most Recent Pay Check Stubs.
• Current Financial Statement.
• Any Documents Supporting The Hardship.
• Current Market Analysis (CMA).  Typically from a Realtor or appraiser.
• Estimated Net Sheet Or HUD-1 (Your Realtor or investment company will provide this document.
• A Copy Of The Executed Sales Contract With Buyers Proof Of Funds Or LSR.
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NO…not normally!  Negotiating an Arizona Short Sale is an art and very difficult to do.  Lenders typically do not allow a homeowner to discount their own loan(s).  Plus, you need an offer to purchase the property to begin negotiating, and many homeowners are missing this important part!  The best choice is to hire an experienced Arizona Short Sale Realtor with a proven track record or an Investment Company that buys Arizona Short Sales.  Obviously we favor the Investment company approach because they instantly put in an offer and manage the entire Arizona Short Sale negotiation process for you!  Lastly, it could take 2…3…4 or more months battling it out with your lender(s) depending on many factors such as where you are in the Arizona Foreclosure Process, how many liens you have on your property, and how much you currently owe.  This period is difficult for most homeowners because they are just sitting around waiting for an answer.  It might seem like not much is going on, but in fact if, you have chosen wisely, your Arizona Short Sale coordinator is negotiating daily on your behalf!  A good Arizona Short Sale Realtor or Company will give you updates weekly on the status of your file.  Influencing the Brokers Price Opinion (BPO – basically a Realtor that estimates your houses value), as well as providing supporting evidence as to why the bank does not want to own your home is all part of the short sale negotiators job.  If done correctly, the bank will finally listen and the Arizona Short Sale will be accepted.  This is why you want to hire a good Realtor That Does Short Sales!  The bank wins because they get a non-performing asset off their books, you win because you are out from underneath a huge housing burden, and your Arizona Short Sale Realtor or Investment Company (www.SellQuickForCash.com) wins because they either get a commission, or a house at below market value!
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That’s right, so if the Arizona Short Sale takes four months to complete, that is four months you were able to save your money and live mortgage free!  This is a great time to start paying off your other bad debts or just put some money away for a deposit on your next rental.  This ability to save some money is just the beginning of regaining control of your situation and getting back some peace of mind.  Once you get Arizona Short Sale Help and the Arizona Short Sale is completed, you will be able to move on with your life and put this mess behind you.  That is the amazing power of a Real Estate Short Sale!  It truly is an amazing exit strategy in today’s tough market....the key to sucess is to hire a qualified Arizona Short Sale Realtor.
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Cody Sperber is a Realtor That Does Arizona Short Sales, and has been educating Arizona's homeowners "How To Stop Foreclosure Arizona" for over 5 years.  As a local Arizona Foreclosure Expert and Arizona Short Sale Specialist, Cody and his team of professionals want to act as a resource for homeowners who are facing difficult financial pressures and falling behind on their mortgage payments.  When you hire Cody, you not only get his knowledge and expertise, you get a whole team of experts that each play an important role in the sales process.  We have Arizona Short Sale Realtors, full time Arizona Short Sale Negotiators, Arizona Short Sale Project Managers, Escrow Officers, and Real Estate Attorneys (if need be) that are all members of Cody's Team.  Furthermore, Cody owns www.SellQuickForCash.com - Arizona's premeir "Cash For Houses" website, and a Foreclosure Resource website www.ValleyForeclosureSpecialists.com.