What is the Short Sale Process? Get Short Sale Help Now!

What is a Short Sale?

In general, a Short Sale in the city of Maricopa is completed when someone sells their house for less than what they owe. This will require the mortgage lender's approval of the sale. There are many different variables that go into the decision of the lender to approve the short sale, and that is why it is very important to have a skilled Short Sale Agent that has experience in negotiating the city of Maricopa Short Sales with a comprehensive understanding of Arizona state law. If you're looking for an experienced Arizona Short Sale Realtor to get short sale help now you will want to contact James Sanson.

Our Short Sale Results

The James Sanson Real Estate Business Group has successfully negotiated and closed short sale transactions since the early 2000s. We have a skilled team to handle your short sale. Our short sale team has working relationships in the banking industry and have gained the confidence of the decision makers and workout specialists within the mortgage companies to help accomplish short sales. This allows us to work quickly and efficiently with your mortgage lender to work through any hurdles or issues to reach a solution and successfully close your short sale.

What is the Short Sale Process?

SHORT SALE STEP 1

Find and contact a licensed, qualified Short Sale real estate team, such as the James Sanson Real Estate Business Group, experienced short sale experts. We will set up an initial FREE short sale consultation over the phone or in person, whichever is more convenient for you to answer any questions you may have and to set up the game plan moving forward.

SHORT SALE STEP 2

We will provide you with our short sale packet to jump-start the short sale process for you. Our Short Sale Welcome kit is very homeowner friendly and can be filled out online. You will need to typically think of applying for a mortgage but in reverse. You will need items like a Letter of Authorization authorizing us to speak on your behalf regarding all loan matters so that the negotiations with the bank can begin. Then typically we see our clients needing the most current w2s, paystubs, bank statements, etc, and a letter explaining your situation. 

What are some examples of Qualified Hardships?

• Unemployment
• Change in Income
• Divorce or Relationship Difficulties
• Death
• Illness
• Excessive Obligations
• Abandonment of Property
• Employment Transfer/Relocation
• Extenuating neighborhood/community circumstances
• Loss of Tenants

In addition, you will need to provide a statement of your current income and all of your other assets for your mortgage lender to evaluate. List your other assets, including bank accounts, stocks or other investments, additional real estate, and anything else of value. This information should display that you have neither the income nor the assets to repay your mortgage loan in full. As mentioned earlier, we will have all of the appropriate documents for you to fill out so that we will have everything you and be walked through the entire process with one of our agents.

SHORT SALE STEP 3

James Sanson Real Estate Business Group will prepare the real estate listing documents and set an appointment with you to meet you at your property to present the documents, get them signed, and take pictures of your property. If you are out of state, then we will arrange to gain access with you and complete all necessary paperwork through email/fax, and over the phone.

SHORT SALE STEP 4

James Sanson Real Estate Business Group will complete a Broker Priced Opinion (BPO).  This analysis will show the selling prices of similar homes in your area for the past 3 to 6 months along with the appropriate adjustments to ensure the market value is accurate.

SHORT SALE STEP 5

James Sanson Real Estate Business Group will aggressively market your property for sale in order to procure the highest market value offer as possible. We also educate the buyers and their agents of the short sale process to ensure they know they will need to be patient as we work with your lender.

SHORT SALE STEP 6

James Sanson Real Estate Business Group will package up and deliver your entire Short Sale Package which includes the Purchase Contract, to your mortgage lender. This is where having an experience Arizona Short Sale REALTOR will pay dividends as we will negotiate to get the entire short sale approved from beginning to end. They will want to examine the price, terms, and other conditions of all documents included in this package. 

SHORT SALE STEP 7

Internal Steps Within The Mortgage Lender's Office:

1. a brief audit to ensure all documents needed are present
2. get assigned to a bank negotiator or workout specialist
3. the mortgage bank will order an independent Broker Price Opinion and/or appraisal.

This valuation will help the mortgage lender’s decision as to whether they accept, counter, or decline the offer.

SHORT SALE STEP 8

If the bank accepts the short sale offer, the bank still may require specific terms they demand from the seller. This is where having a short sale team who has experience dealing with different banks and mortgage insurance companies becomes valuable

SHORT SALE STEP 9

Closing. Once we have approval from the bank

1. we facilitate the transaction to recordation
2. Once the short sale records with the county, you are no longer responsible for the property.

Short Sale Laws and Legislature

We strongly encourage all homeowners considering a short sale to speak with a licensed Certified Public Accountant (CPA) to see the tax implications of a short sale or foreclosure. We have relationships with CPAs, but you can find one on your own too. 

We will be glad to recommend to you a real estate CPA to answer your specific tax questions upon your request for a FREE consultation. Contact us today!

2) Deficiency: What is it?

Defined: A deficiency occurs in its most simplistic form when a property is sold for less than the value of the loan on the property. The amount of the deficiency is the difference between the sales and loan amounts. Generally speaking, the smaller the deficiency the more likely the bank will accept the short sale. Therefore, James Sanson Real Estate Business Group works hard to secure a purchase contract for the highest market value amount possible.

Can your lender come after you for a deficiency judgment when foreclosing or short selling your property?

This question should best be answered by a real estate attorney. The James Sanson Real Estate Business Group works closely with qualified attorneys we can recommend for you. However, what you need to know is Arizona is an “Anti-Deficiency State”. This means that generally speaking if the bank forecloses on your home they cannot pursue you to seek a deficiency judgment. However, there are some exemptions to Arizona’s anti-deficiency statute. For further information regarding Arizona Revised Statutes please visit: www.azleg.state.az.us

HELOC’s (Home Equity Lines of Credit) are also another type of loan that creates a separate set of issues you need to be aware of. These are typically “personally guaranteed” by you the homeowner and not just secured by your home. This means the bank may still have the right to pursue a deficiency judgment even after agreeing to approve the short sale. 

*The James Sanson Real Estate Business Group is a team of licensed real estate agents operating under broker Keller Williams Realty Phoenix. We are not a licensed attorney or licensed CPA. We recommend you consult with these professionals for further specifications.