Friday, November 6, 2009

Homeowners Short On Cash Turn To Short Sale

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Processing a short sale transaction in Tempe, AZ can take place for a multitude of reasons given the difficult economic times that we are in. The housing market has been hit hard by this recession. This has caused many home owners to face the fact that they now owe much more than their home is worth. Also, with the popularity of the adjustable rate mortgage over the past ten years, many mortgages have been revised to much higher interest rates.

It is because of these factors that many in Tempe, Arizona can not sell their home to pay off their existing mortgage and soon facing a mortgage payment that they can not afford (or already are facing that payment).

The result of these trying times is that many home owners are resorting to the use of a short sale to rid themselves of a mortgage that they can not or do not want to pay. The short sale has alleviated many headaches for people that have lost their jobs and can not pay the mortgage, or people that purchased more house than they could afford using a ARM. Because of the assumption that the housing market would rise forever, many holding ARMs thought that they could easily sell their home for a profit. However, the are now forced to execute a short sale transaction. With a short sale, the home owner does not get a profit from the sale of a home. Many consider a short sale, a simple way to essentially break even.

Many people facing foreclosure are now resorting to the short sale of their property to get out of their homes quickly. With a short sale, after you are granted the permission from your lender to use a short sale, the home will be priced to sell for less than is currently owed on your mortgage in an attempt to sell it quickly. The bank normally accepts this lower offer as payment in full and the seller can walk away from the transaction debt free.

The short sale has proven popular in large part because of the way that credit bureaus treat it. The short sale of your home will help you avoid a huge black mark on your credit history. This is clearly a better option than walking away from your mortgage obligations and having your house foreclosed on. A foreclosure can last as long as ten years on your credit report.

The short sale of a home in Arizona can be a quick and easily way to get released from the obligation that you have with your mortgage lender to pay off your mortgage. Remember that you first need your bank’s approval to short sale your home. Because of the multitude of people facing foreclosure, your chances of getting approval from your bank are very high.

For more information regarding short sales go to: http://short-sale-arizona.info/

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