Phoenix Short Sales Explained

Actual Clients Who Benefited From Short Sales

Job Required Relocation.  A young couple purchased a home in Gilbert's award winning Power Ranch in 2007 for $288,000.  A couple of years later the husband was required to relocate to another state with his company. They decided to rent the house, subsidize the rent the monthly payment, and hope the Gilbert real estate values would rebound.  As savings dwindled, they decided it was time to pursue a different option, and elected to do a short sale.  The house sold in mid 2010 for $183,250 and best of all the bank in writing stated, "no deficiency judgement will be instituted".

Job Loss. A couple moved from New Jersey at the recommendation of friend who relocated earlier. They found jobs before coming out and moved into a new house in what is now San Tan Valley.  Unfortunately, after a year the husband lost his job and could not find equal employment. They moved back to New Jersey where they readily found employment and attempted to sell their home in San Tan Valley as a traditional sale.  With home prices falling monthly and renting their house, they realized that they were sinking further into financial distress. Less than 4 months after listing their home, it closed and the bank agreed it would NOT pursue a deficiency judgement. They are now on the road to rebuilding their financial future.

Contact me to see how a short sale can benefit you.

A short sale can be an excellent solution for Phoenix and east valley homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes especially in Phoenix, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved. This has been a real benefit to many parts of the Phoenix valley including San Tan Valley, Queen Creek, Gilbert, Mesa, Tempe and Chandler. Sellers considering a short sale must also understand the anti-deficiency laws and tax implications.  A lender may release the deed of trust but pursue the deficiency on the promissory note.  For this reason, working with a team of professionals is critical.

But to be technical, here's a more official definition:

• A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

• Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
• Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.

If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.

Understanding your options now could mean all the difference in the world.