May 10, 2011
Arizona Short Sale Compared to Getting Foreclosed on is a Simple Choice
Losing your home due to the inability to meet the monthly payment obligations is quite possibly the worst financial situation you could ever find yourself facing. In fact, a foreclosure puts a big negative mark on your credit report, where improving it could take several years. Further, the bank may file a legal case against you as part of the foreclosure action. All this would then hinder your ability to secure any kind of loan, leaving you without the ability to obtain new credit.
Consider a Short Sale as a Smarter Credit Position
The pitfalls of a foreclosure are stomach turning and often irreparable. Hence, any choice that offers a solution to the situation is a no brainer. A short sale is one option for homeowners who are struggling in money problems. To be clear, a short sale involves selling your home at a price that is below the amount you owe the bank.
A nice component with short sales is that they create a win-win-win situation for all parties involved in the transactions:
* The property owner is able to stave off foreclosure and get their loan paid off.
* The bank is able to recover his dues without going through all the drawn out litigation process, costly attorney expenses, of foreclosure and marketing the repossessed property
* The new buyer is able to buy the property at a reduced price.
Thinking about Doing a Short Sale? Keep the Following Things in Mind
The first safety measure you must take when settling your mortgage through this process is to get a written acknowledgment from the bank, clearly stating that all your debts are wiped clean. Other things to keep in mind to stay away from any possible negative consequences of the process are:
* Guard your credit rating: Do not forget that a short sale is listed on your credit report. This is why you want your bank to report it in a way that is advantageous to you. For example, if your report merely states that the debt is satisfied, your score will not be drastically affected. On the other hand, if your bank reports you closed out for less than the actual amount owed, your FICO score will drop automatically.
* Seek out good tax information: A liability for taxes on a short sale surfaces when the lender claims that the debt forgiven should be treated as an income. A tax attorney can help you make some choices to limit this cheap shot tax hit.
While a short sale is certainly a superior alternative to going through foreclosure on several grounds, a homeowner often struggles to convince the bank to agree to them right away. This is because the bank has to accept to forgo a part of the mortgage claim that they want to recover. Therefore, when faced with a tight financial situation, a short sale must be executed as soon as possible. The longer you delay, the greater the amount of arrears, and the less likely that the bank will be to agree to the process. With that in mind, I have seen homeowners stay in their homes for many months without making their loan payments and still complete the transaction. However, this is a bit tricky and I would never recommend this strategy to anyone.
If you, or someone you know, are looking at a foreclosure situation you will want to have an experienced Realtor help you in exploring your options. Certified short sale expert and Scottsdale AZ Real Estate agent Jen Wehner has been the #1 producer for people who want to avoid foreclosure in Arizona for all Prudential real estate brokerages. There is no fee to speak to Jen and you can get feedback on what the best choice is for you. Having experienced Realtor work with you could protect you, your home, and your financial future.
You can contact AZ specialist Jen Wehner today Toll free- 877-293-3259 or Local- 480-748-6925 Email- Jennifer@JenniferWehner.com
Jen Wehner is an top producing Real Estate Agent based in Scottsdale Arizona. If you would like to discover more about buying or selling homes in Arizona, click here SCOTTSDALE REAL ESTATE or you can visit Jen’s real estate blog here ARIZONA Real Estate AgentS
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