Short Sales Can Be a Win/Win/Win Situation

avoid a foreclosure in Queen Creek AZ, avoid a foreclosure in Phoenix, sell a short sale in Phoenix, buy a short sale in Queen Creek, The Short Sale Diva, Jessica Sulliman, Queen Creek short sale agent, Phoenix short sale agent, AZ short sale agentAre there viable options to a foreclosure? Yes, and yet many aren’t aware of their options and believe that there is no other way out than foreclosure. The sad truth is that numerous homeowners have suffered the frustrations associated with foreclosures when there were alternatives available.

No, you will not likely hear about a foreclosure from your bank when you are behind in your payments. While they are not as forthright in explaining your options to you, many banks are granting more short sales to homeowners than in the past.

Why a Short Sale?  

In simple terms, a short sale is when a lender agrees to accept less than what is owed to them on your mortgage balance. They agree for you, as a seller, to short sale your home rather than being foreclosed on. Sadly, some refuse to request a short sale, mistakenly thinking that they are doing the bank a favor if they choose a short sale over foreclosure. The truth is that there are advantages to the homeowner, and the bank is in no way obligated to accept the terms of a short sale.sell a short sale in Phoenix, buy a short sale in Queen Creek, The Short Sale Diva, Jessica Sulliman, Queen Creek short sale agent, Phoenix short sale agent, AZ short sale agent

At the outset, let’s just say that there are several advantages to the seller who chooses a short sale over a foreclosure. In fact, some say that it’s a win/win/win situation to the seller, buyer, and lender.

Reasons why Many Choose a Short Sale

In honesty, it would be easy to fill two pages outlining the advantages to sellers who choose to request a short sale from their lender. To begin with, many realize that they don’t have to suffer through the stigma of foreclosure. To list a few of the advantages that the sellers realize:

  • During the sale, the sellers continue to live in the house.
  • The seller avoids foreclosure.
  • Sadly, a foreclosure can negatively affect future job applicants.
  • With the right negotiations, deficiency judgments can be negotiated between the seller and the lender.
  • Short sales are reported differently than foreclosures. Short sales are reported by many lenders as “paid in full for less than agreed.”
  • When you’ve come to love your home, you will have the satisfaction of knowing that it won’t be vandalized as it might be following a foreclosure.

For these reasons, including several more, many sellers are considering the option of negotiating a short sale with their lender.

Foreclosure Timeline

 

Why Would a Lender Consider a Short Sale?

This is an understandable question. After all, bankers are in the business of making money. So why would they sell a house short of the balance owned on the property? The truth is that lenders would prefer to sell a house for market value. At the same time, they know that foreclosures are time consuming and costly, and in the time it takes to move a foreclosure, the property continues to depreciate. Below is a timeline of a foreclosure.

 

There are other issues that lenders have to consider. During the short sale process, the sellers continue to live in the house. Therefore, lenders don’t have to worry about the vandalism and theft that might occur with foreclosures.

Buyers Consider Short Sales

Why might a buyer want a short sale? The new buyer would consider a short sale if he/she loves the home. Perhaps the biggest advantage that buyers realize, though, is their savings on the home that they purchase through a short sale.

At the same time, owner occupied homes are less likely to be trashed and vandalized than those who have been foreclosed on and are currently owned by the banks. Many times, this makes a huge difference in the condition of the property when you move in.

Whether you choose to purchase a short sale or are considering a short sell as a seller, we can help. Our previous experience in the Phoenix area with short sales is something that may well be of benefit to you.