Short Sales

The short answer is yes! We can help you with your short sale.

FAQ's About Short Sales in the Scottsdale Arizona Metro Area

What is a Short Sale?

A short sale is a real estate transaction in which the seller owes more on the property than its current market value. If the homeowner is unwilling or unable to pay the sale costs and liens encumbering the property he/she can hire a trusted real estate professional to market and sell the property as a short sale. This requires approval from the lien holder(s) and sometimes third party investors.

Would I qualify for a Short Sale?

There are 2 main qualifications for a good Short Sale candidate:

1. A short sale candidate is a homeowner who has a financial hardship. This could be due to sudden change in monthly household income, loss of job, illness, divorce, and more.
2. A short sale candidate also has negative equity in their home.

How do I select the right team to successfully manage and negotiate my Short Sale?

SEEK LEGAL COUNSEL BEFORE ATTEMPTING ANY SHORT SALE! It's important you understand the potential consequences of short selling. A real estate attorney is best suited to advise you on how to proceed and explain your alternatives. Once you feel comfortable with moving forward make sure the REALTOR® you hire is experienced and understands the work required to see you through to the end. A properly trained short sale agent knows how to qualify you for a short sale transaction and therefore has a very high success rate. Ask lots of questions and make sure they keep you updated regularly on the progress.

How long does a short sale take?

Every short sale is different. Once a buyer and seller enter into a contract it's sent to the seller's lien holder(s) for approval. From this point it can take anywhere from 45 days to six months depending on several factors including persistence of the negotiator, number of lien holders and private investors involved and timeliness of seller to submit updated documentation.

As the seller am I required to pay the Realtor commissions?

Commissions are generally paid by the bank. Clarify this with your agent up front so you are not taken off guard at closing. Some agents will team up with a "short sale negotiator" and charge an up front non-refundable fee. Know your total out of pocket expenses prior to listing your home as a short sale.

Are there tax ramifications to a Short Sale?

Depending on your unique situation as a seller there may be tax ramifications. We are not qualified to give tax advice but we highly recommend you discuss this with your accountant or CPA before short selling your property.

Are there credit consequences to a Short Sale?

If you're behind on your mortgage payment(s) your bank(s) have the right to report this to the credit bureaus. After going through a short sale or foreclosure most sellers have multiple late payments showing on their credit report. When this occurs it does have a direct affect on your credit.

Can the bank sue me or place a judgment against me for the difference between what I owe and what the home sells for?

This is a good question that is best answered by a qualified real estate attorney. What you should know is that Arizona is currently an "anti-deficiency" state which under certain circumstances prohibits lenders from suing a seller from losses on their home. To see these circumstances you can go to Arizona Revised Statutes, Title 33, Chapter 6.1.