Arizona Foreclosure Homes and Short Sale
16 January 2008Since Arizona remain to have one of the highest number of foreclosure homes, it is not surprising how distressed homeowners are opting for a short sale in order to avoid foreclosure. Having a foreclosure on your credit report will certainly affect your financial credibility and thus cutting your losses with a short sale is a smart move. Of course, the large supply of Arizona foreclosure homes will pose a challenge for these distressed home owners. The good news is the proceeds of the short sale are considered to be non-taxable income.
This, of course, is not always the case. Before, a short sale was not an option for these homeowners because of the tax being imposed. The passing of the Mortgage Forgiveness Debt Relief Act has given homeowners facing foreclosure a fighting chance. With this new legislation, no tax is imposed on the seller. Although the seller can expect an offer that is lower than the current market value of their home, they will still be able to recover some of the investment they have made and most importantly, avoid foreclosure.
On the other hand, buyers looking to invest in Arizona foreclosure homes can also benefit from a short sale. In addition to lower prices, a short sale involves faster transaction especially because the most of the properties are still in the pre-foreclosure stage. Another bonus for these buyers is the fact that the housing market is currently favoring them instead of these sellers. This only means that market conditions are optimum for buying real estate properties. With the help of brokers like Foreclosure Support, finding amazing deals for these Arizona foreclosure homes in major cities such as Phoenix, Tucson and Messa will be easy.
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on January 21st, 2008 at 1:56 am
Short sales are really a great way for homeowners and buyers to work together to avoid the worst of foreclosure situations. A declining real estate market, and the distress of being in foreclosure, and the fact that banks are experiencing so many foreclosures right now really work out in favor of investors and those looking to enter the real estate market for the first time. And Arizona such such a beautiful state to live in, as well.