Sunday, March 21, 2010

What is a Foreclosure Short Sale?

In the world of real estate, a foreclosure short sale is a process where you sell your home for a price that is lower than what you owe on your mortgage. Why would someone do that? This is certainly a valid question. When you decide to use a foreclosure short sale in Phoenix, Arizona, the difference between what you owe on your mortgage and the sale price you get in your foreclosure short sale is generally forgiven by your bank. The foreclosure short sale is an innovative way to avoid foreclosure when you are not in a position to make mortgage payments anymore.

A foreclosure short sale in Phoenix, AZ is normally allowed when certain economic conditions are met. The foreclosure short sale the opportunity for both the homeowner and the bank to ease the losses they would normally have with a foreclosure. Remember that a mortgage company will only approve of the foreclosure short sale if they will lose less money doing it than they would with a foreclosure. With the abundance for people facing foreclosure because of a poor economy and bad lending practice, foreclosure short sale is becoming a popular move. The benefits of a foreclosure short sale are plenty. Foreclosure short sale can reduce the negative consequence that a foreclosure has on your credit score. It is also quicker, less expensive and less complicated than a foreclosure.

If you are having trouble making your loan payments, you should consider foreclosure short sale on your home. It is much better than allowing your property to go into foreclosure. Also, it has the potential to help improve the poor economy. If your property is worth less than you currently owe on it, take consider whether a foreclosure short sale can get you into a better situation. Talk to your lender about your options. They will appreciate you taking a proactive approach are more likely deal with you. Consider this. It takes as long as five years after a foreclosure to quality for a loan and at least seven years after bankruptcy. In just two years after a foreclosure short sale, you can qualify for a loan.

Lenders are approving foreclosure short sale now more than ever. Here are the basic steps to foreclosure short sale:

1. Contact your lender to inform them of your problems and ask if they would consider allowing a foreclosure short sale.

2. Find a real estate agent with experience handling foreclosure short sale.

3. Find out the value of your home.

4. Put your home up for sale.

5. Find a reliable buyer.

7. Give the deal to your lender for approval.

Keep in mind that the foreclosure short sale is in the best interest of both you and the bank. Good luck with your new option.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

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