Time to Short Sale – Arizona 2011
Time to Short Sale? Most players know they should only play good cards, but with most Arizona mortgages underwater most homeowners are folding. Either by foreclosing – totally walking away or a selling their home in a short sale. Few players actually possess the patience to accomplish a short sale and end up walking away and and destroying their credit. Fannie Mae increased their waiting period for a new loan to 7 years after a foreclosure just earlier this year.
Think of it this way, by waiting for an offer and for the bank to process your short sale file you are giving yourself a head start in a race. The effects of a short sale on your credit are better than a foreclosure.
Continually paying in to losing hands is like bringing a knife to a gunfight, you’re not going to win. So why keep throwing money at home that has caused you switch your diet to Ramen Noodles and 99 cent cheeseburgers. If you are paying more than 30% of your salary towards your mortgage, we need to talk.
You must be willing to fold. Folding is not an option in poker, it is an absolute necessity. Sometimes, folding has to be done. You might want to take advantage of this folding “option” sooner rather than later. The tax relief from short sales on primary residences expires 12/31/2012. With the time it takes to process a short sale, that window is shrinking every day. By folding you are winning. That sounds totally backward doesn’t it? By folding you are winning? We’re usually told to keep trucking, you can do it, there’s a light at the end of the tunnel. Do you see the light by denying yourself the quality of life you are losing by scrimping to pay that massive mortgage? As strange as folding concept may sound, it is dead on. If you wait until after that date to short sale or even foreclose for that matter you risk paying the taxes on the debt that you shorted or walked away from in a foreclosure. It’s time to short sale, it’s 2011.
