Friday, April 2, 2010

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

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