What is a Short Sales in Phoenix
 What
is a short sale? A short sale is the sale of a home in which
the seller's mortgage holder agrees to accept less than the
balance owing on the home loan. The lender agrees to
write off the portion of a mortgage that is higher than the
value of the home.
For example, the balance owing on a
home is $400,000 but because the market has declined in
recent years, the value of the home has declined to
$250,000. If the owner attempts to sell the home for
its current value, either the owner will have to come up and
pay the difference or the seller's lender will have to agree
to accept less than what is owed against the home.
When considering a short sale, the
seller's mortgage company will determine if the owner is
eligible through a process of reviewing the owner's
financial status, the value of the home, the potential costs
of actually foreclosing, and the buyer's offer to purchase
the home. If the mortgage company decides to move
forward with the short sale, the mortgage company will agree
to accept less on the loan instead of foreclosing on the
home.
Short sales can be lucrative and
provide a buyer with a great opportunity to buy a home in
this declining market. However, short sales do not
happen quickly.
For more information on purchasing a
short sale in Phoenix, give me a call at 480-888-1234.
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