An increase in foreclosure rates will inevitably bring with it an increase in short sales. But what is a short sale?
A short sale happens when you sell your house for less than your remaining mortgage balance, the proceeds of which go to the lender and in return the lender forgives the remaining balance. Selling your home as a short sale is one way to avoid foreclosure.
As a general rule, lenders lose money when they foreclose on a property. Consequently, they would rather not have to foreclose if it can be avoided. A short sale represents an opportunity to cut their losses because a short sale usually allows them to recoup more of the cost of the loan than a foreclosure process would.
However, don’t think that a short sale is an easy thing to accomplish. In order to get permission for a short sale, you must provide documentation showing a genuine financial hardship. And don’t think that the decision for accepting a short sale is solely in the hands of the lender. Sure the lender must first agree, but this is not the final word. If there is mortgage insurance involved, this company also gets input on the decision. If there is an investor backing the mortgage, they also get input as to whether to accept a short sale.
The transaction process for a short sale can be rather cumbersome as well, whether you’re on the buying or selling side. Many short sales fail due to additional demands by the lender, such as requiring the broker to reduce his or her commission and/or that the seller signs a document requiring him or her to pay back the shortfall.
If you’re on the selling side of a short sale, consider having your agent or other experienced professional negotiate with your lender for a better deal. And remember, if the lender does accept a short sale and forgives part of your debt, that is considered taxable income and you must declare it as such to the IRS.Back to Table of Contents
Dont Miss a New Listing Again!
Already registered? Login
FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free!
*Contact Information NOT Shared*
Robin Rotella Team
Keller Williams Integrity First Realty
6641 S Kings Ranch Rd, Suite 3
Gold Canyon, AZ 85118
Robin Cell: 480-225-7445
Home | Open Houses | Our Listings | Search for Homes | Advanced Search | Map Search | Foreclosures | Commercial Search | Gold Canyon By Subdivision | Client Reviews | About Us | Local News | Meet the Team | Gold Canyon Blog | Contact Us | Real Estate News!!! | Gold Canyon Homes | Gold Canyon All Subdivisions | Homes for Sale in Gold Canyon, AZ under $200,000 | Homes for Sale in Gold Canyon, AZ from $200,000 to $300,000 | Homes for Sale in Gold Canyon, AZ from $300,000 to $400,000 | Homes for Sale in Gold Canyon, AZ from $400,000 to $500,000 | Homes for Sale in Gold Canyon, AZ from $500,000 to $600,000 | Homes for Sale in Gold Canyon, AZ from $600,000 to $700,000 | Homes for Sale in Gold Canyon, AZ over $700,000 | Mortgage Rates | Buyer/Seller Info | Gold Canyon Community Info | Natural Hazards in Arizona | FREE kw Search App | Best Local Movers
© 2018 Arizona Regional Multiple Listing Service, Inc. All rights reserved. All information should be verified by the recipient and none is guaranteed as accurate by ARMLS. Information deemed to be reliable but not guaranteed. Real estate listings held by brokerage firms other than Robin Rotella PLLC are marked with the ARMLS logo and detailed information about them includes the name of the listing brokers. Listing broker has attempted to offer accurate data, but buyers are advised to confirm all items. Only IDX residential listings are displayed on this site. The information being provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify perspective properties consumers may be interested in. This site will be monitored for 'scraping' and any use of search facilities of data on the site other than by potential buyers/sellers is prohibited. Information last updated on 2018-12-18.