This article covers some of the frequently asked questions that clients ask when considering a short sale of their property in Glendale, AZ. Of course this is not by any means an exhaustive list of questions.
What is a short sale? A short sale is when your Lien Holder(s) or lender agrees to accept less than you owe in order for you to sell your home in Glendale, AZ.
Why do lenders or banks accept discounts (short sale)? A lender or bank takes a discount or agrees to a short sale in Glendale, AZ because it saves them money. It gets bad debt off their books so they can reinvest that money by giving out another loan. On average a Lender loses $30,000 to $80,000 on each property that they take back as a bank owned property. In many cases a short sale is necessary in order to get you out from under your mortgage debt. By doing a short sale, you will be able to take a large bite out of the money you owe to your mortgage company, so that you are no longer liable for the entire amount.
Will every lender or bank allow a short sale in Glendale AZ? The answer is no. The majority of the lenders do short sales however; there are a select few that do not do short sales. Every lender is different and in Glendale AZ, we have many, many lenders involved so there is no hard and fast rule.
Who qualifies for a short sale? Most everyone who is facing a true financial hardship qualifies for a short sale in Glendale AZ. However, each lender and loan type has a set of requirements specific to them. The general requirements for a seller to qualify for a short sale are:
• documented financial hardship,
• behind on payments or facing imminent default,
• no equity in the property being shorted,
• no liquid assets,
• a lender or loan type with a clearly defined short sale process.
Do I need to know what type of loan I have in order to complete a short sale? Knowing what type of loan you have is crucial to the process. There are often specific short sale requirements unique to each loan type. You can find this information by looking at your mortgage statement, the settlement papers from when you originally purchase the property, or by calling your lender. Our office staff in Glendale AZwill be happy to help you as well.
Will I be able to do a short sale if the loan payments are current? In Glendale, AZ, the answer is maybe. As noted earlier, every lender is different and has different requirements. Some Lenders in Glendale AZ will entertain taking a discount (short sale) when a homeowner is current on their mortgage however they typically require the property to be listed for sale by a licensed real estate agent.
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At MoreChoices Real Estate in Glendale, AZ we have an excellent track record of being able to close short sale transactions. We would welcome the opportunity to help you with your property. Simply call our Glendale AZ office at 602-330-1840.