What is a Short Sale?

Most homeowners who have a hardship either in their personal lives or financially are seriously considered by the majority of lenders for a short sale. Other considerations are things like job transfers or various hardships which make it difficult for the borrower to afford or sustain their mortgage. Banks will also look favorably to facilitate a short sale if you are expecting a hardship down the road but can still make your mortgage payments today.

A short sale is when the bank or lien holder that holds your mortgage note accepts a purchase contract on your home that is lower than the amount you currently owe them. Any unpaid balance that is owed to the bank is what is known as a deficiency. If it is mutually agreed upon by both parties, your lender will release you from your deficiency.

Most sellers consider short sales because it is an alternative to a foreclosure and the bank would rather give you a short sale than process a foreclosure because they make more money on a short sale. A short sale also helps protect your credit vs. a foreclosure that can have damaging effects on your credit for up to 7 years.

The Dangers of Short Sales!

Many agents in Tucson are unfamiliar with the various banks and the different forms they require and systems they have set up. This constitutes for a long, drawn out short sale processes and may damage your credit. Many agents also do not know how to properly negotiate with banks. This leads to an abundance of sellers getting notices AFTER the short sale has taken place requesting the deficiency to be paid in full. Unfortunately in today’s marketplace most agents are not doing much business and will take any listing with out even asking about your situation in the hopes they get one done. If you run into one of these agents run. They are the reason why people think short sales take 6 months!

The most important aspect for the seller in pursuing the short sale option is the agent they hire to represent them. Experience is essential and no book or class out there can teach an agent how to negotiate with the banks on your behalf. It is imperative that you ask your agent if they are familiar with your specific bank. Its one thing if they know the banks name and another if they have processed 15 short sales with them. Don’t let their inexperience harm you and your family’s future. With over 220 short sales processed our staff and team have facilitated more short sales than most major short sale companies and lawyers in the state of Arizona. Please give us a call for a free 1 hour consultation before you think of putting your home on the market!