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Arizona Short Sale: How Short Sale is Better Than a Foreclosure

Working with your bank to Short Sale Arizona may be better than letting it go
 
Although you may have missed 1 or 10 payments and trying to do an Arizona short sale, the clock starts to tick once you’re actually in foreclosure. Beyond that, a foreclosure is a stigma on your credit report and can affect it for many years to come. According to finance experts, both short sale and foreclosure affect your credit report, but the impact of a short sale is far less dreadful than that of a foreclosure. If you are facing an unmanageable financial condition, foreclosure may not be the only way out of it. Keep reading for a better idea!
 
An underwater mortgage situation or foreclosure is more than just losing your home. Navigating through the short sale process or deciding to let it go to foreclosure can be really troublesome without expert help. In most of the situations, an Arizona short sale can become your best bet out of such financial crunch before considering more dramatic action like foreclosure or bankruptcy. It is important to study your choices carefully and make your decision accordingly.
 
short sale arizonaArizona short sale vs. Foreclosure
 
At one point or another, every underwater homeowner has to face the same question; Arizona Short Sale or foreclosure. According to experts, foreclosure is the last option that one should choose as it has the most severe financial consequences on your credit, just like bankruptcy. Depending on the state you live in, the foreclosure could take a lot of time, or as little as 3 months. In the meantime, each late payment is affecting your credit and costing the bank more and more money. It can become more complicated as well if you owe unsecured loans against the property.
 
On top of all of these issues, it may take up to several years to get a mortgage again. With rising prices and interest rates, even 2 years could price you out of the market. An Arizona short sale can help you in such situation and although, you credit rating will suffer but not like that of a foreclosure. It is quite difficult to return from a foreclosure. Even if you can get financing, the rates and terms will not be as favorable.
 
Arizona Short Sale vs. Loan Modification
 
With the tough economic conditions and job cuts, it has become difficult to keep up with the mortgage payments. Most of the homeowners are looking for a loan modification to alleviate the problem. However, a loan modification is nothing but a relief in the interest rate you are paying. There is typically no reduction in the principal balance. You can only expect sufficient room for survival rather than living with comfort. Further, if you accidentally sent the wrong information in this modification, you might close the doors for future short sale.
 
The Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act, 2007, allows homeowners to exclude debt forgiveness in their federal tax returns against income for the loans discharged between 2007 and 2012. This is something you would need to address with your local tax professional that can let you know how completing a short sale Arizona or foreclosure will affect your tax liability.
 
The Arizona short sale process can be done without listing the house sometimes and not putting out signs; you can avoid embarrassment in the process. This is something unique that I offer as an established Arizona short sale realtor that has fostered hundreds of cash buyer contacts.
 
If you’re behind on payments or considering short sale vs. foreclosure, reach out to me and see how I can help you best navigate through the process with as little stress as possible.
 
Tracy (G+) is an Arizona Short Sale Realtor, Investor, Rehabber, and Foreclosure Expert.
 
She also is an avid blogger, vlogger, contributor to the Bigger Pockets Blog, and consultant on all things Arizona Foreclosures.


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Best of the best

“Hi Tracy, again thank you for moving us through the short sale process quickly with our last AZ rental...losing several rental properties has been stressful, so it was important to work with someone who “knew the drill” and was methodical. Your team has earned our respect and there’s a reason we’ve chosen to keep utilizing you…”...