Short Sale Phoenix Gilbert Scottsdale Queen Creek San Tan Valley

Short Sale Phoenix Gilbert Scottsdale Queen Creek San Tan Valley

By: Amy Gerrish

short sale help smaller

Why be foreclosed on? Short sale.

Avoid the foreclosure stigma – Homeowners will always have to disclose that they had a foreclosure on any mortgage application and (many job applications) that they submit in the future. This can have an adverse affect on their future mortgage rates. Foreclosure is asked about specifically in credit inquiries. There is no seven-year time limit on this item.
Protect credit score – Credit scores will be lowered by 300-plus points (per loan) by foreclosure. The impact of a short sale—about half that much.
Improve eligibility for a government insured loan – The homeowner will be ineligible for a government insured loan for 5-7 years (only two years in a short sale). A foreclosure is the one credit report item that is almost impossible to have repaired.
Protect employment prospects – Many employers run credit checks on prospective employees. Foreclosure is one of the top items that will put a potential new hire, or even current employment, in jeopardy.

$4500 Short sale State of Arizona Program

  • Income no greater than 150% of AMI (area median income)
  • There must have been some household reduction in income since financing a home either through underemployment, illness, death or divorce.
  • Must be homeowner’s primary residence.
  • Eligible properties may not have an outstanding mortgages, in excess of 150% of purchase price.
  • Start online Application Process

The consumer must complete the SOHAZ on-line self assessment and application
Program assistance commitment must pre-date the fully executed purchase and sales agreement.
Fidelity National Title must faciliate the closing.


 

Short Sale Phoenix Gilbert Scottsdale Queen Creek San Tan Valley

there is no magic solution to being underwater on a home. But there are options. If you are seeking options to get “out” from underneath a home with limited or no hardship please consider the following.

  1. Hardship Letter – Draft one even if in your eyes you don’t have an extreme hardship. An example of an extreme hardship would be that you had heart surgery with horrible complications and ended up on life support for 3 weeks with a 6 month long recovery. If your hardship is less then that, still sit down and write out your hardship. Make it honest, make a strong case and make it heartfelt. Even if you don’t think you have a hardship, that doesn’t mean that your loan servicer will think that once they see your situation on paper.
  2. Get tax advice – There are more tax implications if the property is not your primary residence. Seek a competent tax advisor/CPA for implications on both primary and secondary residences. Principle reductions, loan modification & strategic and regular short sales all MAY have tax implications.
  3. Will the loan servicer/bank come after me for the balance? Any new terms given to you, (short sale approval letter, loan modification agreement) by the your lender should be careful looked over. If it’s not clear in the those new terms, have your lawyer or real estate lawyer read over the new terms. Some of the new government programs life HAFA Short Sales and FHA/HUD Pre Foreclosure have terms stated like: You will not be asked to sign a promissory note to pay back the balance of the shorted funds as a part of their program.
  4. Hire an experienced San Tan Valley short sale Realtor – Check their track record, can they provide you with a list of successful closed short sales? Have they worked with your lender before? Do they know the different short sale programs offered by your lender/government. Do they know how to price a short sale? Do they know how to escalate a file?