According to the Arizona Association of Realtors®, “The term ‘short sale’ is used to describe a sale in a situation where there is more debt owing against a property than the property’s value. In a loan default situation, (pre-foreclosure) the creditor(s) may be willing to agree to allow the property to be sold for less than the loan amount and/or accept less than (or “short”) the amount owed as payment in full.”

In other words a short sale is when a lender accepts less than the amount due to satisfy the loan.  The lender, now Creditor,  “forgives” the borrower a portion of the debt. As you can imagine, creditors are not too keen on this, and the procedure to complete a short sale is neither simple nor easy. Typically, creditors will consider approving a short sale only when they calculate that it’s in their best interest. For example, the borrower is unable to repay the loan, is facing a foreclosure, and the current value of the home is less than the loan balance.  The creditors best interest are almost always price and terms.  It is their job to decide wheather they would net more money accepting the best short sale offer they are presented with or foreclose on the property. 

Borrower may put the home up for sale, find the buyer, and request that the lender accepts the proceeds of the short sale as the full repayment of the loan. The lender will consider whether this will net them more money than a foreclosure and whether they could get the money faster. If so, they may approve a short sale. Like we said, the short sale process is neither simple nor easy, and there are multiple levels of approval the borrower must go through. The short sale also has a negative impact on a borrower’s credit report, but far less of an impact that a Foreclosure.  For many Arizona Home Owners a Short Sale may be their best option to get rid of a depreciating asset. 

To learn more about Short Sales in Arizona and to see if you and your home qualify for a Short Sale, please Call 480-422-1999 or send us a quick note..  Check out How the Foreclosure Process Works and read more about How Short Sales Work and you should stop by our Short Sales Frequently Asked Questions  section to learn more.

We strive to be the most informative website in the Phoenix Real Estate Market.  We assist distressed Phoenix Arizona real estate owners avoid foreclosure by short selling their real estate.  At myREALpro.com you can search the Arizona Multiple Listing Service (ARMLS) for Residential and Commercial Real Estate For Sale or Real Estate For Rent.  Shop for homes throughout the Phoenix Arizona Real Estate Market.  Receive Free Professional House Valuation for Real Estate you own in and around Phoenix Arizona.  Search for Rental Homes, Townhouses and Apartments using our Rental House Search Engine .  View luxury homes for sale in in prestigious Phoenix Arizona Neighborhoods.  Subscribe to our Home Owner News , an Informative Real Estate Newsletter with valuable tips and tricks and a fresh perspective on the Phoenix Real Estate Market.  Read the latest Real Estate news for the entire valley of the Sun including our Blog.

Short Sale Disclaimer
Website visitor and all clients acknowledge that Broker/Agent is not qualified to provide financial, legal, or tax advice regarding a short sale transaction. Therefore, the Seller is advised to obtain professional tax advice and consult independent legal counsel immediately regarding the tax implications and advisability of entering into a short sale agreement.

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All information deemed reliable but not guaranteed. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) or information provider(s) shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. Listing(s) information is provided for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.

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