Freddie Mac, New Vista, REDC to Auction 135 Homes on August 7 in Phoenix to Boost First-Time Homeownership
Freddie Mac ,  real estate auction specialist REDC, and New Vista today announced plans to auction 135 HomeSteps®

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Do you owe more than what your home is worth? Are you behind on payments and feel that you can’t afford your home anymore? Do you think that you wouldn’t be able to pay a Realtor to sell your home due to not having enough equity? These are all symptoms of being “upside down” in your home. In simple terms, your loan amount is higher than the current market value of your home. You may want to consider negotiating an Arizona short sale.

So what can be done with a situation like this in Phoenix or Arizona? A short sale might be the best solution for your needs. Many people have never heard of the term “Arizona short sale” or “Phoenix short sale”. A short sale in Arizona is when your mortgage company agrees to take a less amount owed on your home in an effort to sell the home before having to foreclose.

Most people who are “upside down” or owe more than their home is worth are left with only 2 options when they can’t afford the payment anymore. The first is foreclosure; obviously no one wants a foreclosure. Believe it or not, that bank doesn’t either. The repercussions of a foreclosure for both the homeowner and bank can be devastating. The homeowner loses a home and destroys his credit. The bank loses thousands in court costs and foreclosure expenses.

The second option is working an Arizona short sale. The advantages of doing an Arizona short sale or Phoenix short sale is coming up with a win-win solution for all parties. For example, when homeowners complete a short sale in Arizona, they have effectively stopped a foreclosure from taking place. And they have significantly lessened the damage to their credit. As far as the bank is concerned, an Arizona short sale has prevented them from repossessing a home. Repossessing a home or foreclosing on a home can cost banks tens of thousands of dollars.

Furthermore, banks are in the business of lending money, not owning homes.

So how does a homeowner qualify for doing an Arizona short sale or Phoenix short sale? This answer will vary greatly depending on the mortgage company at hand. Every bank has different policies and guidelines when negotiating Arizona short sales and Phoenix short sales. For example, some banks will require the homeowner to be 3 months behind before they will even consider allowing an Arizona short sale. Yet, other banks will allow Phoenix short sales even if the homeowner is current with mortgage payments.

Generally speaking, to do an Arizona short sale, banks will require the proof of financial hardship. This can include loss of job, divorce, overwhelming medical bills, and other various financial stressors. Furthermore, the bank will require that the home be listed with a licensed real estate agent. This is usually done to verify the value of the home. Homeowners are typically not allowed to try and negotiate and/or sell the homes themselves when doing an Arizona short sale or Phoenix short sale. In conclusion, if you feel that you can no longer afford your home, and you owe more than what it’s worth, consult with a licensed real estate agent or attorney regarding an AZ short sale.

A Phoenix short sale is one of the rock-solid remedies that you, as a homeowner, can utilize of during a financial squeeze. If you realize that you can no longer keep or afford your home and you are falling behind on your monthly mortgage payments, then it may be the right time to consider a Phoenix short sale. But it is important to note that not all those who are affected by the recession, or any financial downturn for that matter, can sell their homes through Phoenix short sales. The most important thing to bear in mind when trying to negotiate a Phoenix short sale or a statewide Arizona short sale is the fact that the home or the piece of real estate that you will short sale should also be the security or collateral for the loan in which you are falling behind.

In other words, a Phoenix short sale is a form of renegotiating your loan with the bank. Essentially, it is away to avoid foreclosure by selling your home. But a Phoenix short sale is not just like any ordinary sale of your home. Here, you will not get hold of the proceeds. The resulting cash from Phoenix short sales will be given as payment to the bank or any other financial lender from which you owe money. In any type of Arizona short sale, the lender agrees to receive payment that is below the total amount of your loan.

In other words, availing of a Phoenix short sale will result in a discount to your loan. But take note, not all banks or lenders may agree to an Arizona short sale. Typically, financial institutions accede to Phoenix short sales only when there is an economic slow down or slump, which could weigh down on most homeowners who borrowed money from them. While a Phoenix short sale could be perceived as a discount on the part of borrowers, it allows mortgage lenders to recover a big portion - or in rare cases, the total amount - of the loans they lend out.

If you want to take advantage of a Phoenix short sale, you first have to visit your mortgage lender or bank and talk with someone in the loans department. If you and the loan officer shake hands on a Phoenix short sale of your home, you will have to sell your mortgaged home and give the proceeds to the bank or lender. No matter how much cash you have raised on an Arizona short sale of your property, it will all be good enough for the total satisfaction of your mortgage. This is actually the main benefit of Phoenix short sales.

In the end, you should know that a Phoenix short sale all depends on whether the bank agrees to it. After all, what financial institution would want to receive a payment that is less than the total amount due? Conversely, not all borrowers qualify for Phoenix short sales. However, if you do qualify for a Phoenix short sale or a statewide Arizona short sale, you will have a less expensive way of paying off your mortgage compared to an outright foreclosure. A Phoenix short sale also results in a less disadvantageous credit report for the borrower.