Loss Mitigation Part 2 The Best Way To Avoid Foreclosure

With the abundance of horror stories surrounding Loss Mitigation Departments in Phoenix, Arizona and their inability to keep up with an insane number of requests from defaulting customers, there has to be another way of loss mitigation that can avoid the lender completely.

We truly have an option for loss mitigation that can lead you aware from those horror stories and to a place that will, in the end, result in a better outcome to your current financial situation.

*** Editor’s note: It is important that your banks loss mitigation Department knows about your financial troubles. We are not suggesting through the process described below that you stop speaking to your bank or lender. We are merely suggesting that you find a way to avoid foreclosure by means of another process. The bank and its loss mitigation department will still be involved. However, through the process below, you can remove much of the work from their already full plates.

One of the most successful means of loss mitigation in Phoenix, AZ in recent months has been the short sale of your home. With the help of a real estate agent familiar with the short sale process, the loss mitigation department can play a smaller, but still important role in getting you out of your current mortgage problems.

With the short sale as a means of loss mitigation, a real estate expert will help you avoid foreclosure and he or she will help the bank trim their losses, which is exactly what the loss mitigation department does.

Short sales as a means of loss mitigation are prevalent with home owners that find themselves in the following situations…

-unable to pay their mortgage for a variety of reasons, most commonly loss of job or higher payments because of Adjustable Rate Mortgages

-home owners in upside down mortgages

How does a short sale work?

-you, as the home owner in search of loss mitigation, find a real estate expert to help you with the short sale of your home

-the real estate expert lists your home on the market and finds a buyer that will probably make an offer that is not enough to pay off the mortgage (Bear in mind that you are not searching for a low offer, but with falling home values, it is almost a certainty that the offer will be less than the payoff amount of the mortgage)

-the real estate expert and the home owner contact the loss mitigation department and notify them that they would like to execute the short sale of the home.

-the loss mitigation department, in an effort to cut their losses (which is what they are designed to do) will accept the lower offer as payment in full and forgive the remainder of the balance due on the mortgage.

The benefits of this process are too numerous to mention. It is strongly recommended that you look into this process with a qualified real estate expert that deals with short sales.

Loss mitigation help is in high demand during these trying times. Lenders have departments to handle loss mitigation, but they are overwhelmed. We strongly suggest that you contact a real estate expert regarding the short sale of your home today.

Do you have questions? Read the Short sale FAQs.

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 ShortSalePowerhour.com

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Loss Mitigation Part 1, Banks Overwhelmed

Before the spring of 2009, there was no standard set of rules for loan modifications in the United States or in Phoenix, Arizona.

Each lender in Phoenix, AZ had its own rules as to how they wanted to handle loan modifications. In most situations, the loss mitigation through loan modification process heavily favored the banks. Their main concern was to find a way to recover the money that a home owner was behind in payments. Generally, the banks would either increase the monthly payment or extend the term of the payments so that those late payments would just be paid off at the end of a loan. Usually, when the loss mitigation through loan modification process called for increased payments, the foreclosure of a property was only delayed by a few months, because there was no way that they could make a higher payment.

A new program, announced in the spring of 2009 by the Obama administration has changed the loss mitigation through loan modification process. The guidelines for loss mitigation through loan modification have changed. This program mandated that mortgage payments be reduced to just thirty one percent of the home owner’s income. For many Americans, this meant that they could once again afford to pay their mortgage payments. The loss mitigation through loan modification process, appeared to be a great helping hand.

However, the program only covers mortgages through Fannie Mae, Freddie Mac and the FHA, but it is widely thought that most other lenders will choose to follow the guidelines for loss mitigation through loan modification as laid out by the Obama Administration. The Making Home Affordable Modification Program has placed the focus right on loss mitigation through loan modification. Many in danger of losing their homes to foreclosure didn’t even know what loan modification was.

Since the program’s inception, there have been scores of people flooding into banks to request loss mitigation through loan modification. With all of these people facing the time crunch to avoid foreclosure, this has placed the burden of a national housing crisis squarely on the backs of the Loss Mitigation Department at your bank and every bank.

Before the housing crisis and the crash of the real estate market, foreclosures were not very common. Most lenders and mortgage providers kept a staff of just a few people to handle loss mitigation. Foreclosures were not very common and loan modifications were even less common.

However, the times have certainly changed. Banks and lenders have increased the size of their loss mitigation departments exponentially. This has meant thousands of people needed to be trained to work with loan modifications and all of the other tasks that fall to the loss mitigation department at a lending institution.

There are horror stories abound regarding customers having to hound and hassle Loss Mitigation Departments to get their paperwork pushed through to avoid foreclosure. Loss Mitigation Departments are currently still understaffed, under experienced, and overworked.

Read Part 2 of our Loss Mitigation Report to Find a Better Solution to avoiding foreclosure.

Do you have questions? Read the Short sale FAQs.

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 ShortSalePowerhour.com

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Many Loss Mitigation Departments Open To Short Sale

I’m sure that each of you loves the home in Phoenix, Arizona that you live in and would never want to lose that home to foreclosure. However, with the state of the economy and the housing market, many Americans are preparing to face losing their homes. The good news is that foreclosure in Phoenix, AZ is avoidable through loss mitigation. The key is to take action before the bank does. As soon as you miss one payment, the clock starts ticking. So, when you realize that you can not make payments on your home mortgage anymore, it is time to contact the loss mitigation department at your bank. Their job is to help keep the bank from losing money.

With a foreclosure, the bank stands to lose a lot of money. Between the expenses of a foreclosure and the low price that the bank will get when it sells the home at foreclosure, a loss mitigation department never wants to face foreclosure. The loss mitigation department works out to make it a win-win situation for both the parties.

With loss mitigation, as with any problem, certain steps can be followed to help you work through the problem and come out of it with the best possible outcome.

-Admit you have a problem. Be honest with yourself about your financial situation. You can not solve the problem with the help of loss mitigation unless you recognize that there is a problem.

-Information and Communication can bring this stressful situation to a more manageable state. Know what you are getting into, who can help you, and how they can help you. Be open and honest with your lender.

-Get your ducks in a row. Know the facts of your financial situation. How much do you owe? How much do you make? How much can you afford to pay? And be able to support the answer to each of these questions when dealing with a loss mitigation department.

In the past, a loss mitigation department did the majority of its work through loan modifications. However, the short sale has become a popular tool for home buyers recently and loss mitigation departments are willing to work with the short sale as a means of cutting their losses.

The short sale as a means of loss mitigation is proving to be a very effective solution for people that want to avoid foreclosure and losing their home. With a short sale of your home, you as the buyer can cut your losses and get out of a bad mortgage situation with a very small penance to pay on your credit score. The bank, in true loss mitigation department style, also manages to cut its losses and keep costs down by avoiding foreclosure.

To take advantage of short selling your home as a means of loss mitigation, contact a real estate expert that deals with short sales today.

Do you have questions? Read the Short sale FAQs.

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 ShortSalePowerhour.com

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Seeking Loss Mitigation, Consider a Short Sale

Loss mitigation is the process of helping home owners that are delinquent in paying their mortgage and are close to foreclosure. Loss mitigation is used by home owners in Phoenix, Arizona to save their home and of trying to stop the foreclosure before it happens. It is an intervention created to help homeowners avoid foreclosure through third party that helps with loss mitigation. Even though you may think that loss mitigation is a new process, it has been around for many years, and has the potential to save lots of money and headaches.

Foreclosures are destroying the housing market in Phoenix, AZ. That is why loss mitigation is so important. Because foreclosures are higher than ever, loss mitigation specialists are busier than ever. With ARM still going up, we will very likely see the highest foreclosure rates in history. Loss Mitigation is the best method of halting the foreclosure process leading to the sale of your property at auction. The reason for Loss Mitigation is foster an agreement between the homeowner and the bank that put a permanent end to the foreclosure process.

Homeowners often believe that they can refinance with another lender or even with their same lender. However, because there is a good chance that you have already missed a few payments, your credit score will likely not allow you to refinance. Therefore, the only real option available to you is loss mitigation.

With loss mitigation, the lender can help the borrower avoid foreclosure. With each different situation and lender, the rules of loss mitigation are different. One of the more popular choices for loss mitigation is the short sale of your home. Remember that the home owner and the bank BOTH stand to lose thousands of dollars if your situation goes to foreclosure. So, the short sale can be a very effective loss mitigation technique.

With both lenders and borrowers looking for ways to come out of this with as little damage as possible, loss mitigation is on the forefront of both party’s minds. So, taking advantage of the benefits of a short sale can be a win-win situation for both parties. While the bank will still be taking a loss in most situations and the home owner will have a black mark to their credit score for a few years, it is considerably better than the alternatives.

People searching for loss mitigation are growing in numbers. With banks not wanting to take on the responsibility of owning your property, now is the time to consider a short sale as a means of loss mitigation. With foreclosure and bankruptcy being the dark ending for many people, loss mitigation in any manner is ultra important during your time of need. Because no ending to the financial situation you are in will be without pain, it is crucial that the loss mitigation technique you choose is one that eliminates as much of the loss and heartache as possible.

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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Short Selling Not a Tall Order

Short selling involves property that is going to be sold for a price that is less than what it is worth. Often times, when a home owner in Phoenix, AZ can not afford to make their loan payments, they choose to use the method of short selling their home. It is more preferential than the lender taking possession of the property in foreclosure and having to maintain the property until it can be sold.

Short selling a property in Phoenix, Arizona requires that the bank or lender agrees to let the seller or home owner sell the home for less than the value of the current mortgage note. While banks don’t prefer to allow short selling of a home, it has become much more prevalent in recent years with the given state of the economy.

Short selling a property can be a god send for home owners that can not refinance or get their lender to agree to a loan modification. Short selling usually takes about six months or less to complete and allows the home owners to get out of their loan without owing he lender any additional money beyond the selling price of the home.
The one rare exception to this generality is when a bank or lender issues a notice of deficiency. This is where, despite agreeing to short selling a home, the bank still decides to hold the original loan holder liable for the remaining balance that was not paid off during the short selling of their home.

When that deficiency notice comes to you, despite the fact that you have avoided a foreclosure, your credit will still take a hit. So, the notice can keep you from obtaining credit in other situations, like car loans, credit cards, or a future home purchase.

Fortunately for you and all of us, banks have been forgiving a larger and larger majority of these short selling homes. Just to be safe however, you should work to negotiate for a judgment of “Payment in Full” so that the bank will keep from issuing that deficiency in judgment. Work to create a legally binding agreement that will keep the bank from coming back to you for further money.
Short selling does affect credit scores to a certain degree, but not nearly as much as a foreclosure or bankruptcy will. The bankruptcy and foreclosure can stay on your credit report for ten years, while short selling will only appear for a few years. Many people who have used short selling to rid themselves of a bad situation have been able to obtain another mortgage loan in as few as two years after.

Every mortgage lender handles the short selling of a home differently. Just be sure that you understand how your mortgage lender will handle your short selling.

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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Loss Mitigation, Get An Expert on Your Side

Are you facing foreclosure because your mortgage payment is too high? Are you searching for a form of loss mitigation in Phoenix, Arizona that can help you out with this problem?

Dealing with the bank’s loss mitigation department is a very challenging thing to do. With the banks tightening their belts, the process of dealing with loss mitigation has gone from challenging to nearly impossible. Acting quickly in this crucial time of crisis is amazingly important to finding a loss mitigation situation that can work for you.

Loss mitigation can be found with the help of a real estate expert that deals in the short sale of homes. Because of their experience in loss mitigation and helping out people in your situation, they are the best experts to contact when you need to know how to negotiate with your lenders loss mitigation department.

A Short sale specialist in Phoenix, AZ, as a means of loss mitigation, can negotiate with the bank to facilitate a short sale on your behalf. With late fees mounting and a foreclosure notice potentially only weeks away, your loss mitigation needs to be kicked into high gear. The help of a short sale real estate expert can move the loss mitigation process along more smoothly and efficiently on your behalf. Being upside down in your mortgage (upside down refers to the fact that your property’s value is less than the your mortgage loan) is not new to a short sale specialist.

Having dealt with your upside down situation several times before with home owners just like you, a short sale specialist can take you through the steps of dealing with the banks loss mitigation department during the short sale of your home. This is also the reason why loss mitigation departments don’t mind working under the terms that a short sale provides. When they have the opportunity to deal with someone that understands the process from the home owners side, it makes the banks job much easier.

To be perfectly honest, taking a do it yourself approach to this situation should not even be considered. You would perform open heart surgery on yourself, would you? The same notion applies here. Leave the work to the experts.

Take a quick test to see if a short sale specialist can work for you in your loss mitigation needs.

Is your mortgage higher than the value of your home?

Do you want to avoid foreclosure and/or bankruptcy?

Have you missed payments or are you having trouble making payments?

If you answered "YES" to any or all of these questions, it is time for you to get your loss mitigation in high gear by contacting a real estate expert that deals with short sales. There knowledge of the loss mitigation process is keenly essential to your survival in this process.

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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The Short Selling Process

This article is intended for people in Mesa, Arizona who are considering short selling their home or property. The process of short selling might be slightly different from state to state, or lender to lender or realtor to realtor because the short selling process is fairly abstract at times. If you have weighed all of the options available to you and decided that for your own individual purposes that short selling is right for you, we have laid out a multiple step approach that shows what a home owner in a tough situation should do. Bear in mind that this is only a general outline for people that are considering short selling their home. Practice due diligence and consult an expert in short selling in your area.

A Realtor in Mesa, AZ with short selling experience can determine if you, as a home owner, can benefit from the short selling of your home based on lender rules.

Do you currently owe more on your property than the home’s current market value? A comparable market analysis can be used to determine the market value of the home you intend to enter into the short selling process.

Are you, as the seller and primary owner of the residence currently behind in payments? Or, do you anticipate falling behind in payments in the future? Lenders now understand that several factors out of your control can contribute to your need to consider short selling your home because of the potential that you might default on your loan. So, the lenders are also open to short selling the home to ward off future problems.

Is there a financial hardship that you are currently undergoing causing you to consider short selling your home?

Examples of hardship are:

· Unemployment

· Divorce

· Medical emergency / sudden illness

· Bankruptcy

· Death

2) Home owner starts to put together the hardship documentation for the lender to review in the short selling process. This may include, but is not limited to; Income Report, Hardship Letter, Copies of Paystubs, copies of bank statements, copies of previous tax filings

3) Real estate expert list the propert for short selling purposes to receive offers

4) Seller finds an acceptable offer contingent on the lender and seller agreeing on the terms of short selling the home.

5) The offer accepted by the seller is submitted to the lender for approval of short selling the home.

Note: Short selling is dependant on a buyer offering to purchase the property. If the seller gets no offers, there is nothing for the bank to review in the short selling process and the seller will not qualify for short selling the home. Short selling is also dependant on the lender accepting the offer. If the lender chooses to reject the offer, you will not be short selling your home.

6) When or if the lender accepts short selling offer, a letter of acceptance is issued and buyer and seller enter into an escrow period.

7) Escroe and the short selling process are complete when the buyer provides the necessary funds for the transaction.

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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Short selling Your Home

Many home owners are suffering with big mortgage payments in the Phoenix AZ area. Many states like in Tempe, AZ, that have seen housing booms in the last ten years are feeling the pressures of higher mortgage payments. This has led many to search for options to avoid foreclosure. One of those options appears to be better than all of the rest available.

There are some options for mortgage consumers to look at. The benefits to these options range from great to barely noticeable, but at least there are options.

The best option out there is to try short selling your home. Short selling means that you are preparing to sell your house for less than it is worth. With home prices falling, property values have done the same. This has led millions of home owners to pay more for a house that is worth less. If they need to get out of their high payment mortgage, many are considering short selling their homes, taking a financial hit but keeping their credit relatively in tact.

When short selling a home in Tempe, Arizona, the seller may still be held liable for the short comings of the sale price as compared to the mortgage value. However, one of the reasons that the short selling of a home has become so popular is that banks and lenders are, with more and more frequency, beginning to forgive the difference between the sale price of the home and the loan balance.

The other option to consider is to allow your home to be foreclosed upon. When compared to short selling your home, this is a terrible choice. It does have benefits but really not any benefits that are better than short selling your home. With foreclosure, you are ruining your credit for at least seven years. In the worst scenario that involves short selling your home, your credit will be flagged for just a few years. With foreclosure, the bank also loses out. Although statistics are not abundant on the short selling of properties, records indicate that a bank who go to foreclosure sale of your home receive rougly sixty four percent of what they could have received through the short selling of the same home. Obviously, comparative market analysis was used to compile this data. Also, foreclosure can take as long as a year or more to finally complete. Short selling takes much less time.

With the short selling of your home, you will have the opportunity to purchase a new home in a relatively short period of time. Clearly, your financial situation will need to be stable, but perhaps getting into a house that has lower payments will be an option.

Short selling clearly presents the best option for financially troubled home owners. Consider it for your financially troubling situation.

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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Working With Your Lender in Short Selling

Although most people are not very familiar with it, short selling has been around for a long time. In a nutshell, short selling a home means that the home owner is willing to sell the home for less than the value of the home.

There are primarily two reasons why someone would short selling a home. First, to move out of the house in Tempe, AZ quickly. This happens on occasion with people that are facing a divorce or a quick relocation because of a job or other time critical change in their life. Often times, the home owner will try to sell for a profit, but shortly into the process, decide short selling the home is in their best interest.

The second reason isn’t as common. However, because of our current economic situation in Tempe, Arizona and the poor state of the real estate market, homes all over the country are suddenly worth far less than the mortgages that purchased them. Some houses have lost a majority of their value, now worth only a fraction of what they were worth five years ago. Further hurting the home owner, rising payments, unemployment and the like are making it tougher to pay the mortgage.

In this case, short selling the home means that you are getting out of a mortgage that is upside down. It will save you from foreclosure by short selling your home, which can help minimize the damage to your credit. Banks are not a big fan of short selling a home, because even though they understand your predicament, they want the money that was originally promised to them in the note. However, the lenders are more inclined than ever to accept the short selling of a home because they to must adhere to the old adage that something is better than nothing. They understand that short selling gives them a smaller loss than foreclosure sale would potentially give them.

Short selling is a failry good option for home owner. There are a few issues with short selling a home however. Even though foreclosure will have a giant impact on your credit, short selling a home will also have some impact. If a seller can not come to an agreement with the bank to pay the difference between the offer and the loan value, the bank can still report a default on your mortgage to the credit bureau. Many banks in these tough economic times are forgiving the remaining balance of a loan in the short selling process. So, the damage to your credit often lies in the mentality that your lender takes when you are short selling your home.

One last thing to consider, a bank has the right to send your account to an agency that will come after you to collect the balance. However, most banks have done away with this practice, but you should still be aware that this is a possibility in short selling your home. Short selling you home is definitely an option that people facing foreclosure should consider.

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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Short Selling Tax Implications

Our nation is currently experiencing a lot of ups and downs in housing market. Properties that used to be worth a lot of money are now worth just a fraction of that. Because of this, many property owners are in a tough situation where they owe a lot more than their mortgage is worth. Also, selling the property would leave them well short of the needed money to pay off the mortgage. You need to understand the implications of short selling your home.

When you add in the fact that many of these upside down homes in Tempe, AZ are in markets that are already distressed and many of the homes were purchased with an adjustable rate mortgage, things become increasingly difficult. Now, mortgages are seeing interest rate hikes and that tacks on thousands of dollars in monthly mortgage payments.

When you combine the two effects, dropping home values in Tempe, Arizona and increasing mortgage payments you are already in trouble. However, couple those problems with the loss of a job, a major contributor to our country’s financial situation, and you have the makings of a disaster. This current situation also contributes to the short selling phenomenon that a growing number of people are starting to enjoy. With the advent of short selling, home owners are able to avoid foreclosure and come out of a terrible situation in better position than otherwise thought possible.

In most cases, short selling will be a much better solution in the long term than letting your home go into foreclosure. Most people who need to use short selling are already unable to afford their mortgage even if they choose to refinance. You must recall that most of these people were assuming that if they needed to sell their home, they would make a profit on it because real estate always increases in value.

The process of short selling can remove a huge burden from the back’s of many home owners. In the past, short selling meant that you would face a large tax on the sale. Now, depending on your state laws, you may not be hit with the taxes that previously came from short selling.

In many states, some of which tax short selling real estate at nine percent or higher, a seller will need to make a significant tax payment. However, with short selling, remember, you are not in a position to keep your home. So, even with the tax implications, short selling is often times the best scenario.

While the federal laws regarding short selling are fairly clear, it is in your best interest to check the short selling tax laws that are applied at the state level. Being informed as to the tax implications you may face in a short selling situation is important. When you don’t know what you don’t know, you should try to find out what you don’t know.

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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The Value of a Real Estate Agent in a Bank Short Sale Part I

The bank short sale is becoming a larger margin of the real estate market in the Phoenix Arizona area. Many real estate owners and home owners alike do not fully understand the bank short sale. Hence, one of the most challenging aspects of utilizing the bank short sale is to find a real estate agent that knows the ins and outs of the bank short sale. Many real estate agents in Tempe, AZ shy away from the bank short sale. The three factors that often keep real estate agents away from the bank short sale are the additional work involved, the lack of patience with potential buyers in a bank short sale, and the added stress of the situation that often leads to a bank short sale. Therefore, finding an agent in Tempe, Arizona that is willing to take on a bank short sale is vital to the process.

Here is an explanation of the three challenges above to give you a deeper understanding of just how unique real estate agents are that take on a bank short sale. First and foremost, the bank short sale is more challenging because often times the bank short sale takes what is normally a negotiation between two parties and makes it a negotiation between four parties, as two negotiators are often added to the mix. In a bank short sale, the seller and the banks involved do not proceed in the manner that one would in a traditional sale. Generally speaking, the home owner that is using the bank short sale process is upside down financially and their only goal is to get rid of the loan. The home owner doesn’t generally care about getting the best price in a bank short sale. However, sometimes the home owner can work against the bank short sale process by not showing the house at all or showing it in a less than stellar condition.

To complicate the process, the negotiators are not the home owners. The must respect certain policies regarding a bank short sale and are sometimes very difficult to contact and even harder to negotiate with. Negotiators often use their power in the situation to maximize the difficulty of the bank short sale. Also, often times the two negotiators fight amongst themselves because when one gains, the other loses. Also, getting in communications with the negotiators often requires that the home owner has an offer from a potential buyer before they will ever start working on completing a bank short sale. Eventually, there must be an agreement reached on a bank short sale between the seller, the buyer, and both banks. All of these negotiator headaches are even more reason to ensure that you find a real estate agent to handle the bank short sale. Their knowledge and value to the bank short sale process is vital to your sanity if nothing else.

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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Use A Bank Short Sale for a Fresh Start

A recent newspaper report in Queen Creek, AZ proclaims that the bank short sale can save millions of home owners facing a potential foreclosure.

At one point in time, you found your dream home, with all of the right amenities, in the right area, selling at the right price. That dream home, for whatever reason is not worth the same as when you bought it. And, possibly through no fault of your own, you can not afford that home anymore. This situation is regrettable, but it is also the reason why the bank short sale can be a great option for you to regroup.

You might be wondering what a bank short sale is. A bank short sale happens when the lender agrees to a buyers offer on your home which is not enough to pay of the current mortgage in full. However, the bank accepts the bank short sale offer to settle the debt and forgive any difference that exists between the purchase price and the existing mortgage.

The bank short sale process in Queen Creek, Arizona can take several months as it is a complicated process. The bank short sale is usually handled by the loss mitigation department in the bank, which must approve of the sale. Even with a fair offer on the table, the bank may wait for those several months to complete the bank short sale.

Most home owners understand that banks approve a bank short sale so that they don’t have to take on the burden of owning the property and then having to sell the property at foreclosure. Remember, banks are not in the real estate business, they are in the money business.

One of the small obstacles that may stand in the way of a bank short sale is the idea that the bank may not want to jump at the first offer judging that they can reduce their losses in taking another offer.

The bank may consider waiting on a bank short sale to see if the market is corrected (an unlikely occurance for most situations) or if they can get a higher price for the property.

The bank, although they are not in the real estate business, does not want to give away properties either. So, waiting is in their best interest. They are often willing to wait on a bank short sale until they get a more fair price as it is related to the outstanding debt. Regardless of the waiting period, it is still a winning proposition for the home owner who gets out of a loan that they can not afford.

I realize that it is not ideal, sitting there, packing your belongs to move out of the dream home. However, with a bank short sale, you have a greater chance to start over in a new dream home.

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

Technorati Tags: loss mitigation,short sale,avoid foreclosure,foreclosure