Arizona Short Sale Realtor Cody Sperber Explains

A Real Estate Short Sale refers to a lender(s) accepting a sales price that is less than what is currently owed plus all related sales expenses. So basically, a potential buyer can make an offer on the home for thousands less than what is currently owed, and get it accepted by the bank! This is common in a declining housing market and can be a win-win for both the bank and the homeowner. Home sellers should consider a Real Estate Short Sale when the value of their home is LESS than the amount of their outstanding loans. For example, if your home is worth $225,000 but you have a loan of $250,000 then a Real Estate Short Sale is a consideration. Normally a bank will begin to look at the Short Sale Option only if the homeowner is behind on payments and begins to Face Foreclosure, but not always. In rare instances, the bank will still accept a Real Estate Short Sale if the mortgage payments are current. The process to end up at the short sale options typically works like this:

• The homeowner(s) begin to miss payments
• The lender(s) try to arrange a repayment plan
• The repayment plan fails or is never attempted and the bank mentions a Real Estate Short Sale

Now, if you do not have to sell your home, you could wait out the market and hope for a turnaround in real estate values. However, if you do have to sell your home you basically have three options. First, you can bring cash to the table. In today’s declining real estate market and using the example above, you would sell your home for $225,000 and pay another $25,000 to the lender out of your pocket to pay off the loan on your property. This does not include other selling costs such as closing costs, real estate commissions, taxes etc. Second, you could let the home go into Foreclosure. The lender will go through the Foreclosure Process, force you out of your home and then auction it off to the highest bidder at a Foreclosure or Trustee’s auction. The third and best option is to pursue a Real Estate Short Sale. To be sucessful in this type of transaction, you need to get Arizona Short Sale Help. CLICK HERE TO CONTACT ME NOW!

Why Would The Lender(s) Accept A Real Estate Short Sale?