Posts Tagged ‘Phoenix’

Short Sales Can Benefit Everyone

Short Sales and foreclosures made up over 40% of sales in the third quarter of 2008 making short sales commonplace in the Phoenix area.  Without experience and persistence a short sale can be very challenging to close.  But before we get into the details of short sale challenges let’s answer a very basic question, What is a Short Sale? 

A short sale is when a mortgage holder accepts less for the property than what is owed.  It’s that simple, but seeing the sale through to the finish can be a long and arduous process.  Each financial institution is different, I’ve seen Short Sales take anywhere from 6 weeks to 6 months to close, the average usually falling somewhere in the middle.

The first step is to call your lender, discuss your situation and the possibility of a short sale.  Request information on their short sale process and a ”Short Sale Packet.”  Next, talk to your REALTOR about listing your property.  You may need an offer on the table to get the lender to look at your packet, so be sure to discuss the offer and approval processes with your lender.   And as with all major financial decisions you should consult your Accountant and/or Attorney to discuss the financial implications.

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Edited: February 3rd, 2009