If  you are one of the many Scottsdale or Phoenix residents who can’t afford to make your monthly payments or simply have faced a hardship that is effecting your ability to continue paying your mortgage every  month, than a Short Sale may be the answer for to get out of your mortgage, avoid foreclosure, and still be able to buy a new Arizona home in just 24 short months.

Scottsdale Arizona Short Sale Guide

A short sale, simply stated,  is the sale of property where the outstanding loan balance is more than the property is worth at present value,  and the bank agrees to accept less than what is owed in order to close the deal and avoid foreclosing on the home. 

See More: The Difference between a Short Sale and a Foreclosure

Capital Realty is committed to  helping homeowners avoid foreclosure by doing a short sale. We have become experts on the Short Sale process, and work closely with Short Sale negotiators who will help assist in the process, and working with the bank to get your Scottsdale Short Sale Approved. 

Step 1: Is a Short Sale Right For Me

Banks are increasingly willing to work with borrowers with an upside down home who are faced with a financial hardship. If you are faced with a hardship that makes it likely you will be unable to pay your mortgage, your lender would likely prefer to settle the matter with you as opposed to taking the property through foreclosure.

As you consider the option of pursuing a Short Sale, remember your lender is looking to limit any potential loss on your loan. By completing a Short Sale, your lender has arrived at a solution that is, for them, much better than a foreclosure.

Bottom line, your lender wants to work with you to complete a Short Sale to avoid foreclosure. However it is important to understand all of the potential consequences of a short Sale. There are potential tax consequences from a short sale as well as financial obligations. We at capital realty always suggest speaking with an attorney or HUD Approved Counselor prior to doing a short sale. 

For recommendations on a Short Sale Attorney, or HUD Counselor please contact me. 

 Step 2: Am I Eligible for a Short Sale

Determining if you are eligible for a short sale really depends on  the mortgage company who holds your note and is considering the Short Sale request. Generally speaking, as long as the hardship is real and the mortgage company believes the loan is likely to become delinquent as a result, the Short Sale request will be processed by the Loss Mitigation Department.

A big key to getting Loss Mitigation to accept a hardship is to submit a strong hardship letter. The hardship letter sets the tone for the entire file and whether you will be approved or not. 

Below you will find a list of “Short Sale Hardships” that are common and frequently accepted by mortgage lenders.

• Family illness or injury
• Illness or injury in the extended family – particularly if it forces relocation
• Job relocation when the property is equity deficient
• Job loss or significant income loss
• Divorce or split of domestic partners
• Adjustment in mortgage payment or unforeseen increase in living expenses

Step 3: What will a Short Sale Cost?

A Short sale will cost you nothing. And in some cases, a lender may actually pay you to do a short sale. Yes thats true! Although every short sale is different, in most cases you will pay literally no sales costs if your lender approves the Short Sale. All commissions, title and escrow fees, and even most repair expenses are paid by the lender as part of the Short Sale approval. Remember, lenders approve Short Sales and accept the resulting loss in an effort to avoid bigger losses through foreclosure.

Step 4: How to Get Started with a Short Sale

Please contact us today for your FREE, no obligation & confidential consultation about the possibility of doing a short sale on your home. There is no cost to you for the call, and the entire process is free to you if you choose to complete a short sale. We are paid by the lender only if  we close the sale. 

Please Call us at (602) 708-0296 or email us at chadt@selling2arizona.com and we’ll be happy to help you with your Arizona Short Sale!