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What is a Short Sale (also called Short Payoff)?
A Short Sale is a Negotiation to solve a problem. It is a Lender
VOLUNTARILY accepting less money than what is owed and to allow a
property to be sold as an alternative to Foreclosure. Even after the
Federal Housing bills, there is no “right to a short sale”.
What causes a need for Short Sale?
Normally, A New Hardship. (Example): The property Owner
Can’t make payments due to circumstances beyond my control. As
Adjustable Rate Mortgages and speculative / fraudulent loans adjust,
can’t make payment; And, economic downturn prevents refinancing.
The Owner’s Hardship: Did the borrower suffer a
real Hardship, since the time they borrowed. First and foremost, you
need to present a “HARDSHIP LETTER” that explains that the hardship
occurred after they bought the property and is beyond their control.
Good Short Sales: (Sympathetic Hardships):
Divorce, Illness, Death, Job Loss, Job Relocation, Length of Time in
the property (one year), Business Failure (not real estate related),
Not So Good Short Sales: (lenders may have less sympathy),
Default on first payment, General Economic slump,
Fraudulent Loan, Investors with multiple rental properties, Recent
Cash-Out Refinance, Borrowers with good income, just want to walk
away.
Borrowers with Assets, Borrowers with Money in the Bank.
Why do lenders accept Short Sales? Lenders will
do what’s in their best interest. Lenders used to compare the net
results of the Short Sale.
We can help in a short sale situation or help you buy a short sale
if you are looking for it: The time to buy is never
been better in finding a short sale to purchase. Typically it has been
deemed a better deal. (Subject to interpretation).
Simply, give us a call and we will get you the
information you need for this area in many aspects of Short Sales for
Tucson, Arizona.
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