Short Sale Seems Is The Only Answer to Arizona Foreclosures

26 March 2008

Author: admin Posted under Foreclosure homes

The recent spate of Arizona foreclosures have brought life to a standstill for homeowners spread across the state. To ease the situation, a new rule has been passed by the federal legislation, which states that homeowners over-burdened by mortgage payments can get some relief by making a short sale. So far, this was not a law and hence, homeowners across Arizona and in various cities like Tucson, Phoenix, Mesa, Scottsdale, Colorado City, lake Havasu, and Prescott have been subjected to delinquency.

With the new law, it can be hoped that there will be a reduction in the number of Arizona foreclosure homes because now homeowners can pay up their mortgage by making a short sale. This is good news for current homeowners who face a bleak future due to the ballooning interest rates on their mortgages. This promising start to the New Year may help many homeowners to avoid Arizona foreclosures completely.

For those, who are not aware of what a short sale really means, here’s some information to help you understand. In short sale, homeowners can sell their homes at a price that is less than the amount they owe on the mortgage. For example: If you owe $55,000 in mortgage and make a short sale for $50,000, you will not be required to pay the remaining $5,000 to avoid Arizona foreclosure.

There is just one clause homeowners will have to consider. It states that you can make a short sale only if you have proof to show that you are unable to make mortgage payments. With the help of the proof, you will have to get your lender’s approval and also carry on the required appraisal. Once all the three processes are complete, you can advertise for a short sale.

According to a survey and research, it has been seen that a short sale causes less damage to a seller’s credit as compared to Arizona foreclosures. Therefore, if you think that you might not be able to pay your mortgage then opt for a short sale.

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