At this moment in time, there are 17,066 homes listed as short sales in the Phoenix real estate market. With 43,998 total listings, that means 38.8% of all homes listed for sale in the Phoenix area are short sales (meaning the owner is attempting to sell their home for less than they owe on their loan(s) — they are “under water” on their mortgage).
In other words, short sales aren’t going away any time soon.
The decision to short sell your home is not an easy one ”“ there is a lot, a WHOLE lot, to consider.
And the considerations can be overwhelming.
Fortunately, the Arizona Department of Real Estate and the Arizona Association of Realtors (AAR), has penned a great document, the Short Sale Seller Advisory (PDF), to help those considering a short sale navigate the often stormy waters.
This four page document is chocked full of information, and links for even more in-depth short sale information. It is broken down into three sections that includes:
Before Proceeding with a Short Sale
- Understand a Lender’s Options upon Loan Default
- Be Aware of Predatory “Rescue” Scams & Short Sale Fraud
- Contact a free HUD?approved housing counselor or contact your lender directly
- Utilize free services available to Arizona residents
- Obtain Legal Advice
- Obtain Tax Advice
- Be Aware of the Consequences of Committing “Waste”
Options Other than Short Sales
- Consider all Options
- Loan Workout
- Loan Modification
- Deed?in?Lieu of Foreclosure
- Work Out Sale
Short Sale Considerations
- Contact a qualified real estate professional
- Investigate documentation and eligibility
- Determine the amount owed on the property
- Determine the estimated fair market value of the property
- Consult legal counsel
- Understand that a short sale may not discharge the debt
- Obtain tax advice
- Be aware of the impact on your credit score
- Understand that there may be a waiting period before you can buy another home
- Review the Arizona Association of REALTORS® short sale forms
Yeah, that is a lot of stuff to pack into four pages. We’ve covered some of these topics in more detail in various posts about short selling your home, and we’ll be covering even more in the coming weeks and months ahead.
If you are considering short selling your home, you’d be well advised to read the advisory. And anything else you can find. Keep in mind of course, that you can not believe everything you see on the Internet. Be particularly leery of any person, group or “company” that claims to offer you an easy way out. The sheer number of folks that are in or near a potential short sale situation means the scammers and crooks are out in force. Remember the old adage, if it sounds to good to be true, it probably is.
Download the Arizona Short Sale Seller Advisory (PDF file. In English)
InformaciÃ³n sobre Ventas por Menos del Valor de la Hipoteca (Short Sales) (PDF file. In Spanish)
Looking for more information on short sales? Below is a link to all articles written on this site about short sales:
Phoenix Short Sales
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