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Why Exactly Would My Bank Allow Me To Complete A Short Sale?

Hello everyone my name is Jason Wells and I am the founder and operator of the Wells Realty and Law Group where we are doing things most realtors can’t. Thank you for checking out my blog today where I answer your questions about the ever changing Phoenix housing market. If you are in need of a short sale or simply have questions about your current real estate situation please browse through my website or call the office to learn how Wells Realty and Law Group can help you.

In my blog today I wanted to talk with homeowners about question that I hear a lot because it seems too good to be true. While a short sale is a great opportunity for a homeowner most of our clients ask why their bank would ever accept a short sale. First of all it is important to know that Arizona is an anti-deficiency state meaning a homeowner who enters foreclosure will normally not have to pay any of the remaining debt. This means that your lender is simply looking to get the most out of your in the long run between a foreclosure and a short sale. If your property enters in to foreclosure your lender then becomes the owner and will have to foot the bill. This means paying their attorneys for handling the foreclosure, trustees handling the paperwork, and the sheriff sale process. More times than not a short sale will provide your lender a better net return on the property than having to deal with the entire foreclosure process in order to sell the home again. As you know your bank is in the business of lending and making money. When you decide to short sale they are simply determining which decision will bring them the most money on your distressed property.

This means if your property is underwater in Arizona you stand a very good chance of being approved for a short sale as home prices continue to stabilize. If you have a question you’d like answered on my blog please e-mail today to learn more about the Phoenix real estate market. Thanks again for stopping by my blog and have a great day.