Having difficulty with mortgage payments?
Facing foreclosure?
During this emotional and difficult time, there are many alternatives to foreclosure which you may wish to investigate. We have compiled a list of options and resources available to you. Whatever option you decide is best for your situation, we urge you to get help as soon as possible. The sooner you get help, the more options you will have.
A common alternative to foreclosure is a short sale. A short sale is the sale of a home in which the lender (mortgage holder) agrees to take less than what the homeowner owes on the property.
The Basics on a Short Sale
· It can take from 6 weeks to 6 months (this will depend on you and your situation).
· Gives you time to save up and make your exit strategy.
· No ‘Foreclosure’ damaging your credit for 7 years.
· Avoid Bankruptcy which also damages your credit for up to 7 years.
· The cost of the sale, including commissions, is paid for by the bank.
· There is NO out of pocket expense to you, the homeowner. We negotiate our commission with the lender and only get paid if the sale closes.
Keep in mind that your lender does not have to accept a short sale therefore it is “SUBJECT TO LENDER’S APPROVAL”.
The Pro: After collecting the pertinent facts from you and calculating the lender's loss we will have a very good idea of whether or not the bank will approve the sale.
The Con: If you do NOTHING, and your property goes into foreclosure, you will not have representation at the auction, which means that the lender can ruin your credit with FORECLOSURE, possibly give you a deficiency judgment and/or give you a 1099 for the loss and make you pay the taxes or even resell the debt to a collector years from now.
In order to qualify for a Short Sale, you need to have a ‘valid hardship’. Some of the most common types are family illness or injury, job relocation, job or income loss, divorce or separation, adjustment in mortgage payment or unforeseen increase in living expenses. We will help you prepare and submit a short sale package to the lender for consideration.
If you feel that a short sale is your only option, please contact our Short Sale specialist at (602) 818-0473 to discuss your hardship and schedule a meeting. The meeting will last about 45 minutes to an hour. During the consultation, we will go over the details of your case and inform you about what to expect during this process.
Arizona Revised Statutes Title 33, Chapter 6, Articles 2 & 3 contains the official state foreclosure law. Please refer to this source or contact a real estate attorney for any definitive legal answers you may be looking for.
