Phoenix Short Sales Explained

A short sale can be an excellent solution for Phoenix and east valley homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved. This has been a real benefit to many parts of the Phoenix valley including San Tan Valley, Queen Creek, Gilbert, Mesa, Tempe and Chandler. Sellers considering a short sale must also understand the anti-deficiency laws and tax implications.  A lender may release the deed of trust but pursue the deficiency on the promissory note.  For this reason, working with a team of professionals is critical.

But to be technical, here's a more official definition:

• A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

• Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
• Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
• Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.

If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.

Gilbert, Mesa, Chandler, Queen Creek, and Phoenix area homeowners looking for help.

Short sales can be a beneficial alternative to a foreclosure. Early this year I helped a Queen Creek couple that had relocated to Arizona but unfortunately lost their jobs after being in Arizona for less than a year.  They rented their house with the hope that prices would rebound, but after a year of being a landlord they realized that they were just sinking further into financial distress.  Less than 4 months after listing their home, it closed and the bank agreed it would NOT pursue a deficiency judgement. They are now on the road to rebuilding their financial future.

Understanding your options now could mean all the difference in the world.