What is a short sale?
A negotiated settlement, when the lender accepts an amount less than is owed on the loan.
Why is a short sale a viable option for the homeowner?
It can be reported as a paid in full settled account.
Under this program the homeowner may be eligible for a $5,000 relocation allowance.
Do you offer relocation assistance?
We can refer you to a Realtor® who can locate a rental home or apartment for you at no charge to you. You must qualify to rent and must have a source of income.
How will the short sale process work?
We will meet with you at your home. You sign paperwork to put your home up for sale. Then a Bank representative will meet with you to determine if you indeed quality for the short sale. After you are qualified, we find a Buyer. The bank will review the purchase offer and respond with in 7 days, 30-45 days later the transaction will close and your home will be sold.
How long does it take?
From the receipt of a purchase offer to when you turn over your keys can be anywhere from 2 to 6 weeks. This may very depending on each individual case.
How do I qualify for a short sale?
Inability to pay a mortgage due to; Illness, job loss, job transfer, divorce, disability or reduction of income
Why would a lender agree to a short sale?
Foreclosure is costly and lenders prefer to not own real estate!
What is the difference between a foreclosure and a short sale?
See attached comparison chart.
Will the bank seek to recover the amount of loss?
Under this particular program, the Lender will not seek to recover the amount of loss in Arizona which is a non recourse state.
Are there tax liabilities?
If your home is owner occupied, usually no, to be sure check with your accountant.
Will this impact your credit or prevent you from buying a home again?
Your credit score will be affected by the late payments. There may be a waiting period of one or two years to purchase a home again. A loan officer can advise you on your re-qualification.
Does the Seller need to be behind in payments to do a short sale?
Under this program, the Lender is not requiring that the homeowner be behind on payments. However, a financial hardship must exist.
