Simply put, a short sale is a property that is sold at a price lower than the homeowner owns the lender. Often, the home is sold at a price less than the true market value. Since foreclosure rates are outstanding in this struggling economy, more and more banks are agreeing to short sale properties. This helps them recoup some of their investment, and also assists struggling homeowners to avoid foreclosure. Arizona short sale are a good way for homeowners to get out of a tough financial situations while also avoiding the devastation of foreclosure.
The short sale process can be fairly lengthy; however, that is not all bad news. Before a short sale can take place, the buyer, homeowner, and financial institution must come to an agreement and approve the transaction. During this time, the homeowner can continue to live in the home rent-free and also pay off any other outstanding debts they may be facing.
An Arizona short sale is approved by lenders because it actually ends up being more cost-effective than foreclosing the home. Because the lender has to incur expenses such as attorney fees, court fees, and the lack of income from your monthly payments, selling the home at below-market value actually becomes more profitable for the lender. Besides, banks are not out to buy and sell real estate…that is not their business. They really don’t want to deal with the hassle of taking back the home, inventorying it, and then hiring a realtor to list the property and find a buyer—that’s has nothing to do with their business!
Luckily for homeowners, they have options like Arizona short sale. They can participate in this process and have an Arizona short sale coordinator negotiate daily on their behalf. Rather than foreclosing a home and destroying your credit, choose a more stable route by carrying out an Arizona short sale.