A mortgage short sale works when a home owner in Phoenix, Arizona owes more debt on a property than the market value of the property. A home owner that qualifies for a mortgage short sale owes more than the property is worth. The lender of the property will agree to forget the difference of the two. For example; you owe $250,000 and the value of your property is $140,000. In a mortgage short sale, the lender will forgive the $110, 000 difference.
The mortgage short sale takes more time than a traditional home sale will take in Phoenix, AZ. The home owner, with the help of a real estate agent that deals with mortgage short sale, will need to find a buyer. This is crucial because the lender will get the property back if a mortgage short sale doesn’t work. When the process starts, the lender will negotiate the terms of the sale sometimes.
The seller can find out the value of a home by looking at what other homes in the area have sold for that are similar. So, if a home that listed at $250,000 sold for $160,000, this would be comparable to your situation. Show this to a lender so that they can consider a mortgage short sale with the difference being only $90,000 instead of the $110,000 listed above.
Many times, a home owner using a mortgage short sale is behind on the payments, but they do not have to be. A mortgage short sale is the choice of a property owner. If you decide to use a mortgage short sale, remember that nothing is certain until there is a formal offer from a buyer. Before the mortgage short sale process starts, you may need to provide the lender with a financial statement, pay stubs, tax returns, a purchase agreement and a letter of hardship.
About a few weeks after all of the paperwork for a mortgage short sale, you will be contacted. Sometimes they will try to collect the outstanding debt from you first and not give you approval.
The steps to complete a mortgage short sale can be difficult. So, if you want to try a mortgage short sale you should contact a real estate agent that has experience completing these types of transactions. You need to have knowledge of the mortgage short sale process and the real estate agent can help with that. The real estate agent in a mortgage short sale should be able to negotiate with your lender.
If you hold a second mortgage on your property, the second mortgage will also have to be negotiated in the mortgage short sale process. Do not forget this important fact.
With the economy struggling and home values dropping like rocks from an airplane, there are not many options out there. The mortgage short sale process is a good option for people that need to find relief from bad mortgage situations.
For more information regarding short sales go to: http://short-sale-arizona.info/
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