Selling Through a Short Payoff Negotiation - Short Sale
Arizona Residential Real Estate Group
"Great Realtors Selling Great Homes"
Hegreness Residential Team
1-855-826-0888 Toll Free
1-623-826-0888 Local
Selling - Short Sale
Today the market is filled with people who are in a bad financial position that is often complicated by a large mortgage on a home that will not sell today for enough to pay off the mortgage. Left unchecked this financial strain can lead to a home going into foreclosure.
There are Hundreds of Thousands of Arizona property owners left wondering what they should do.
Like so many times in the past, the housing market is in uncharted territory right now. In these uncharted waters homeowners have turned to Real Estate professionals for advice. The advice they received was not always an experienced response and has led to a ton of false/inaccurate information about what to do. One of the worst, yet most commonly followed pieces of advice is to just let a foreclosure happen.
While many of the options available to a homeowner have a very low success rate there is an option called a Short Sale that puts the homeowner in some control of the disposition of the property while also offering some control over their move and the impact loosing the house will have on them long term.
Why not be foreclosed? Why sell short? After years of handling short sales we provide this list of reasons:
Avoid the foreclosure stigma – Homeowners will always have to disclose that they had a foreclosure on any mortgage application and (many job applications) that they submit in the future. This can have an adverse affect on their future mortgage rates. Foreclosure is asked about specifically in credit inquiries. There is no seven-year time limit on this item.
Protect credit score – Credit scores will be lowered by 300-plus points (per loan) by foreclosure. The impact of a short sale—about half that much.
Improve eligibility for a government insured loan – The homeowner will be ineligible for a government insured loan for 5-7 years (only two years in a short sale). A foreclosure is the one credit report item that is almost impossible to have repaired.
Control over deficiency judgment – Although Arizona offers pretty good protection for homeowners against a deficiency judgment through a foreclosure, there is still some risk the lender could attempt to collect against a homeowner for their loss. In a short sale we negotiate terms with the lender that a homeowner can have reviewed by an attorney prior to final agreement. This puts the homeowner is some control of their future risk after transfer of the property.
Protect employment prospects – I was shocked when the first friend of mine missed out on his dream job after going through a foreclosure. He was told the employer could have hired him if he had a negotiated debt such as a short sale, but not after a foreclosure. I WAS SHOCKED. It turns out through the years we have helped homeowners SAVE their jobs by avoiding a foreclosure. Many employers run credit checks on prospective employees, and some, due to security clearances or handling of money, require an employee maintain a reasonable credit standing. Foreclosure is one of the top items that will put a potential new hire, or even current employment, in jeopardy.
This list contains some of the most common reasons, but there are many more. As experienced short sale agents we can offer you the best advice when talking about issues specific to your situation.
One more tip. Do not believe everything you hear about short sales. There is a ton of misinformation about how long they take. There is a ton of misinformation about the success rate. There is a ton of misinformation about risks that do not exist. The truth is an experienced short sale agent has a better than not chance of a successful short sale outcome within a timeframe and under terms very agreeable to a homeowner.
There are Hundreds of Thousands of Arizona property owners left wondering what they should do.
Like so many times in the past, the housing market is in uncharted territory right now. In these uncharted waters homeowners have turned to Real Estate professionals for advice. The advice they received was not always an experienced response and has led to a ton of false/inaccurate information about what to do. One of the worst, yet most commonly followed pieces of advice is to just let a foreclosure happen.
While many of the options available to a homeowner have a very low success rate there is an option called a Short Sale that puts the homeowner in some control of the disposition of the property while also offering some control over their move and the impact loosing the house will have on them long term.
Why not be foreclosed? Why sell short? After years of handling short sales we provide this list of reasons:
Avoid the foreclosure stigma – Homeowners will always have to disclose that they had a foreclosure on any mortgage application and (many job applications) that they submit in the future. This can have an adverse affect on their future mortgage rates. Foreclosure is asked about specifically in credit inquiries. There is no seven-year time limit on this item.
Protect credit score – Credit scores will be lowered by 300-plus points (per loan) by foreclosure. The impact of a short sale—about half that much.
Improve eligibility for a government insured loan – The homeowner will be ineligible for a government insured loan for 5-7 years (only two years in a short sale). A foreclosure is the one credit report item that is almost impossible to have repaired.
Control over deficiency judgment – Although Arizona offers pretty good protection for homeowners against a deficiency judgment through a foreclosure, there is still some risk the lender could attempt to collect against a homeowner for their loss. In a short sale we negotiate terms with the lender that a homeowner can have reviewed by an attorney prior to final agreement. This puts the homeowner is some control of their future risk after transfer of the property.
Protect employment prospects – I was shocked when the first friend of mine missed out on his dream job after going through a foreclosure. He was told the employer could have hired him if he had a negotiated debt such as a short sale, but not after a foreclosure. I WAS SHOCKED. It turns out through the years we have helped homeowners SAVE their jobs by avoiding a foreclosure. Many employers run credit checks on prospective employees, and some, due to security clearances or handling of money, require an employee maintain a reasonable credit standing. Foreclosure is one of the top items that will put a potential new hire, or even current employment, in jeopardy.
This list contains some of the most common reasons, but there are many more. As experienced short sale agents we can offer you the best advice when talking about issues specific to your situation.
One more tip. Do not believe everything you hear about short sales. There is a ton of misinformation about how long they take. There is a ton of misinformation about the success rate. There is a ton of misinformation about risks that do not exist. The truth is an experienced short sale agent has a better than not chance of a successful short sale outcome within a timeframe and under terms very agreeable to a homeowner.