By: Jamie Thompson
Not long ago it seemed no one knew of a short sale. Now, it seems that of every 10 homes I show to buyers at least half of the properties are listed as “Short Sale”. Defined briefly, a short sale means that the seller is “short” money to pay off the mortgage and sell the property and must negotiate with the lender to determine a lesser amount to pay off the mortgage.
The list of grievances for the Short Sale are numerous: Tons and tons of bank bureaucracy to work through, super long escrows that last 3-6 times the normal escrow, waiting for a bank negotiator for days on end, real estate listing agents who may not know how to operate in the banking world and, last but not least, the bank could just say no.
Wait, there is a silver lining. A Short Sale is not a foreclosure! A Short Sale will not impact your credit as negatively as a foreclosure will. Fannie Mae will allow purchase of a home sooner with a short sale than a foreclosure. Presently, with so many bank owned properties in the country, the bank is very likely to say yes to a short sale.
In order to qualify for a short sale, a qualifying hardship is needed such as job loss, job transfer, high medical bills, or significant pay reduction. Having said that, you may have questions and we are here to help!
Jamie Thompson and The Thompson Group are experienced in negotiating short sales in Arizona. For a free, no obligation consultation, please call 480-776-5214.
