Short Sale Questions and Answers For Anthem, AZ

Short Sale Questions and Answers for Anthem AZ

Short Sale questions and answers for Anthem AZ from Mike & Liz Dobbins, West USA Realty

Maybe you have been thinking about it, or just know someone who is. Maybe your neighbor sold their home as a short sale and you are now curious about how it works. With Short Sales beings such a huge topic in Anthem, Mike & Liz Dobbins have provided these answers to the most asked question we have received on the short sale process.

1. WHAT IS A SHORT SALE?

A short sale allows a homeowner to sell their home for less than they owe to their lender on the property. When the market value of the home is less than the amount owned, the owner is considered “under water”. The proceeds from the short sale are used to pay off the outstanding balance of the mortgage. Although the proceeds will be short of the amount owed on the mortgage, it allows the owner the opportunity to avoid foreclosure. It may put their credit standing in a better postion than if the actual foreclosure were to take place. The entire process hinges on the approval of the lender to accept the “short” balance of the mortgage.

2. HOW DOES A HOMEOWNER QUALIFY FOR A SHORT SALE?

The homeowners must submit a packet of required documentation, including a “hardship” letter, explaining their reason for the need to sell, pay stubs, or a letter explaining that they are unemployed, back statements, two years of tax returns, and any other financial documents outlining the income, and debts. These will be updated as requested by their lender as the process moves along.

3. WILL THE LENDER APPROVE A SHORT SALE EVEN IF THE HOMEOWNERS IS CURRENT ON THEIR MORTGAGE?

It does depend on the lender, we have had instances where the approval was granted when the homeowners has never missed a payment. And we have had other cases where the lender demands the homeowner miss at least one payment before they will approve the short sale.

4. CAN A HOMEWONER DO A SHORT SALE EVEN IF THE PROPERTY IS IN VERY BAD CONDITION?

Regardless of condition, you can short sales a home if the lender approves the short sale. But, if the market is filled with short sales and the home is in poor condition, it will more than likely stay on the market much longer than one in good condition. We do suggest to at least have the house clean.

5. WHEN IS THE BEST TIME TO DO A SHORT SALE?

The sooner the better, as mentioned before, you don’t have to miss a payment, but if you are missing payments, give us a call, and we will get started since it is a long process. The most difficult short sale transactions are the ones where the foreclosure date is just a couple weeks away.

6. WILL A HOMEOWNER HAVE TO PAY THE BALANCE OF THE MORTGAGE?

We do always suggest discussing your approval with a attorney. We look to be sure there is a “Full Lien Release” mention in the approval letters. However, all lenders issue different legal language. It is always best to seek legal advice once your approved.

7. HOW WILL THE SHORT SALE AFFECT A HOMEOWNERS CREDIT?

We do hear various answers to that often asked question. We do hear from some of our past clients and mortgage professionals that a drop of zero to 200 points on their credit score. It does depend on where your score was when you began the process. We also do understand a short sale is going to be easier to rebuild your credit score than a foreclosure or deed in lieu of foreclosure.

8. HOW LONG DOES A SHORT SALES TAKE?

Many lenders are getting better at the process, but the short sale process will take anywhere from two to five months from getting the offer to the approval.

9. WHAT IS THE SUCCESS RATE OF A SHORT SALES?

We have seen about a 90% success rate, but we do use a professional negotiator who has done many short sales for many different lenders.

10. HOW MUCH WILL ALL THIS COST ME?

We do not charge the homeowners for our services, the lender should pay all the fees including our commission, and the negotiators fee. There may be some minor fees you may have to pay, but that varies with each lender.

FOR ANY OTHER QUESTION NOT COVERED IN THIS SHORT SALE DOCUMENT, PLEASE CONTACT LIZ AT 623-826-1981 OR MIKE AT 623-826-6936.

PLEASE VISIT OUR WEBSITES THEDOBBINSTEAM.COM and LIZDOBBINS.COM

IMPORTANT NOTICE: LIZ & MIKE DOBBINS OR WEST USA REALTY ARE NOT ASSOCIATED WITH THE GOVERNMENT AND OUR SERVICES ARE NOT APPROVED BY THE GOVERNMENT OR YOUR LENDER. IF YOU DO ACCEPT OUR OFFER OF HELP, YOUR LENDER MAY NOT AGREE TO MODIFY YOUR LOAN. IF YOU DO STOP PAYING YOUR MORTAGE, YOU COULD LOSE YOUR HOME, AND DAMAGE YOUR CREDIT. WE ALSO RECOMMEND YOU CONSULT WITH YOUR ATTORNEY FOR TAX AND LEGAL INFORMATION REGARDING THE SHORT SALE PROCESS.

SHORT SALES QUESTIONS AND ANSWERS FOR ANTHEM AZ