Know Your Options in Difficult Times!

What is a short sale?

A short sale is when the lender agrees to allow the home to be sold for an amount less than what is owed on the mortgage.  A short sale is used when a homeowner is "underwater" and has a financial hardship and cannot afford to stay in the house.

Chances are, you or someone you know in Gilbert, Chandler, Mesa, Queen Creek or the Phoenix area is facing the possibility of foreclosure. But you need to understand that you are not alone. According to First American CoreLogic Inc.,  a real estate information company, 51% of Arizona mortgage holders are "upside down".

Do I qualify for a short sale?

• Are you behind on your payments?
• Have you experienced a change in employment?
• Recently experienced a divorce, separation, illness that has caused difficulty  making your payments?
• Has your loan modification been denied?
• Have your received a Notice of Trustee Sale?
• Have your payments significantly increased?

 Don't delay, contact me immediately for a no cost or obligation appointment.  Click to see actual client situations.

There's alot of confusion regarding Phoenix short sales. Government programs such as HAMP and HAFA, deficiency judgements, purchase money, deed in lieu of foreclosure, etc.  This website will answer many of your questions and I would be glad to discuss your options.  Call me at 480-326-8571 at your convenience for answers to your short sale questions. There is no cost to the homeowner for a short sale. 

Why would a bank allow a short sale versus a foreclosure?

When a bank takes back a property through a trustee sale in Arizona, they are responsible for the maintenance of the home and landscaping, property taxes and HOA.  They also face the risk that the owner mistreated the property as they were in the process of leaving.   In most cases, allowing the owner to execute a short sale saves the bank money. It saves the bank money and allows the owner to move on without the burden of an overwhelming mortgage. Click for an appointment.

Benefits of an short sale in Arizona

If you're considering a short sale as an option, please consider the following:  

• Under Fannie Mae guidelines a borrower can be eligible to purchase another home in two years instead of 5 – 7 years with a foreclosure.
• Prevents blight in the neighborhood because the owners walked away, leaving the house vacant for up to 6 months without any attention or maintenance.
• Minimizes the damage to the seller’s credit due to the manner it is reported to the credit bureaus versus a foreclosure.  Much of the damage comes from the missed payments prior to the  short sale or foreclosure.   A short sale may be reported “Settled in full for amount less than owed”, “Paid as negotiated”, or something similar versus a foreclosure which will remain on a credit report for 10 years.
• Provides a way for those with a financial hardship to exit with dignity when a loan modification  will only keep them in a  home with a over-priced loan when compared to the current market value.
• A foreclosure may be viewed as a serious issue for current and future employers.

Are there tax consequences to an Arizona short sale?

Most of the discussion regarding tax consequences of an Arizona short sale and the accompanying tax consequence involves The Mortgage Forgiveness Debt Relief Act of 2007. This provision applies to debt forgiven during the calendar years of 2007 through 2012.   The most common circumstances where forgiven debt is not taxable involve:

• Debt forgiven involving a principal residence.
• Non-recourse loan: A non-recourse loan is a loan for which the lender’s only remedy in case of default is to repossess the property being financed or used as collateral.
• If you are insolvent when your debt is cancelled.

Tax consequences of any Arizona short sale must be verified with an experienced tax advisor.  It is also recommended that the owner consult a knowledgeable real estate attorney when an owner is executing the short sale on a rental property that has not been a principal residence.  Depending on the nature of the loan; recourse vs. non-recourse, the tax consequence may change.  Click for an appointment.

If you are experiencing a financial hardship and want to know what options are available,schedule a free consultation. A short sale in Gilbert, Chandler, Mesa, Queen Creek, Tempe, Scottsdale or any city in the Phoenix valley has some definite advantages.  Many of those are directly related to the anti-deficiency provisions provided by the Arizona Revised Statutes.

 Today, nearly 1 out of every 7 homeowners in America is behind on mortgage payments. In th Phoenix and east valley area, the numbers are even higher. These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.

Through my experience handling distressed properties at RE/MAX Alliance Group, I've found that homeowners today in Gilbert, Chandler, Tempe and all over the valley in Maricopa and Pinal county have more questions than answers about their circumstances. I have created this site to help you understand the possible solutions to foreclosure, as well as provide a detailed explanation of short sales, which may be the best course of action for some homeowners.

You may also have noticed that I'm offering you a FREE Report to explain your options and help you decide on a course of action. The idea of losing a home can be overwhelming, and I feel it is vital for you to have all the facts necessary to make an informed decision.

As an agent with the CDPE® Designation, I have a strong and unique appreciation of the factors affecting the market, and know that there are options available to you.

If you would like to know more about your options, please call me at (480) 326-8571.

I am here to help … in any way I can.

Gordon Baker, ReMax Alliance  480-326-8571