Although we are years past the darkest days of the Great Recession, some people continue to be unable to make their mortgage payments. Others can pay their mortgage, but owe more than their home is worth.
Should you find yourself in this situation, it is important that you know your options. At SimplySOLD™ we believe that foreclosure should always be the last choice for the homeowner. One of the possible solutions that can help you minimize the damage to your financial status and your lifestyle is a “short sale”.
Short Sales have become routine in Arizona’s real estate market. A short sale allows you to sell your home and avoid liability for any missing payments and a deficiency amount caused by a lack of equity. It is important to know that it requires the written approval of your home’s lien holder(s), and lenders are not required to participate in a short sale. There is also no time limit for your lien holder’s approval or response to your request for a short sale. Each lender is different and has different requirements. Below you will find links to relevant documents that will help you better understand the short sale process.
SimplySOLD™ will counsel you through the unknowns. We provide the resources, knowledge and guidance to help you make an informed decision as to which choice is the best for you. If you opt for a short sale we handle the entire process for you, so you can rest easy.
Other Loan Workout Options.
There is a lot of talk and confusion surrounding loan modifications, short sales and foreclosures. The correct terminology and meaning of the terms typically used is below. Contact us at 480 675-0112 with your specific situation so we can answer your questions and help you with your specific real estate need.
Sell the property. Releases the deed of-trust and satisfies the loan. Called a short sale if amount due exceeds value of the property.
Refinance. Replaces the existing loan with presumably unaffordable payments with another loan with lower payments if sufficient equity in the property exists.
Loan Modification or Restructuring. A repayment plan that temporarily or permanently lowers loan payments, and can involve adding unpaid amounts to the balance of the loan.
Deed in Lieu of Foreclosure. The lender agrees to take the property without foreclosure proceedings. It is rarely available in residential situations in Arizona.
Reinstatement (pursuant to statutory right). Bringing a loan current by paying all delinquent payments and the costs resulting in a cancellation of the trustee’s sale prior to its scheduled date.
This article is made available with the understanding that it is informational only and has not been prepared to provide specific legal advice that may be relied on by any reader.