SHORT SALE vs. FORECLOSURE
If you’re considering a short of your Arizona home, this is not a decision you should make lightly. The short sale process can prove difficult, but it is not without its potential rewards. When you are successful with a short sale, you will avoid the damage a foreclosure can put on your record.
What is a short sale?
A short sale takes place when the proceeds of a real estate sale fall short of the balance owed on the actual loan. A short sale is generally agreed to in order to prevent foreclosure. Many times a bank will choose to allow a short sale when it believes it will result in a smaller financial loss than a foreclosure. For the homeowner, the advantages of agreeing to this process include avoiding foreclosure on their credit record. In short, a short sale is nothing more than negotiating with lien holders a payoff that is less than what they are actually owed.
How to find an Arizona Realtor experienced in short sales.
You’ve made the decision to avoid foreclosure by short selling your home. Now, however, you have to figure out how to hire an Arizona short sale Realtor experienced with the process. In this regard, experience is absolutely critical. You need to hire someone who has the expertise to do the best job for you. Essentially, you want a Realtor who knows all the rules, laws, tricks and tips associated with the short sale process. This is truly a unique specialty and should only be handled by a pro who has taken the time to learn about short sale proceedings and has the experience behind them. Unfortunately, there are many misconceptions and myths about short sales. A real pro can bring clarity to these misconceptions and support homeowners with the expert guidance this process really demands.
Make sure you hire the right short sale real estate agent.
Making the decision to hire the right Realtor experienced in short sales is a critical decision. The worst thing that can happen is you choose the wrong agent. You only have a small window of time to get a home sold before foreclosure moves forward. It is imperative to make the right choice in agents. So, what makes an experienced short sale specialist an expert? Easy! It’s an agent that can concentrate on the marketing of your home and has a team of negotiators available to concentrate on negotiating with your bank to get you the house short sale you need to reduce damage to your credit. You want an entire team working for you – not just one person who is trying to be a jack of all trades! The Angelo Group is experienced, and has a history of success.
How does a short sale affect my credit?
There is no way around it; both foreclosures and short sales will impact your credit. Credit is affected by late payments and delinquency on your mortgage. A short sale, however, damages your credit much less than letting a property go back to a bank through a foreclosure process.
Ultimately, the difference between short sale and foreclosure is realized in the future. There is a heavy advantage when it comes to purchasing a new home. If a bank forecloses on your property, you may be forced to wait as much seven years before even attempting to buy a new home. When you complete a short sale, the wait can be much less. In some cases, you can re-purchase immediately.
It is a good idea to consult with a tax accountant (CPA) or lawyer to discuss your credit situation. Remember, everyone’s situation is a little different. You may be charged by these professionals, but the right information could save you a lot more in the long run, which is important for new purchases down the road.
For more information, or to discuss your current situation, please contact us at: 602-616-1455.