Want to know why you should do a short sale instead of going into foreclosure?
If you are contemplating doing a short sale then you need to understand the differences between a short sale and a foreclosure. In the article below you will find a quick but helpful overview of the differences between the two. Read the article below find out if a short sale is right for you.
Welcome to part 2 in this series on the Arizona short sale process. In the previous article I outlined the definition of short sale and discussed why a lender may be willing to use one in the first place.
Today, I want to take it one step further and give you some distinctions between entering a foreclosure proceeding and beginning the Arizona short sale process.
Banks are now realizing that foreclosing on a home, which is basically defined as the process of the bank taking control of your home, may not always be the best option for them or the most profitable option either.
Notice: I used the phrase “taking control of your home” because technically the bank owns your home if you have a loan on it. In a foreclosure, the lender will take on many expenses. For example, to complete an Arizona foreclosure proceeding and take control of the property a bank or lender will incur the following:
1. Legal fees for both court and an attorney
2. Maintenance and remodeling fees
3. Marketing costs required to sell the property to a new buyer
4. Loss of revenue in the form of no mortgage payments being made
5. Vandalism: many homeowners have taken their frustrations out by damaging the home they are forced to leave.
To make matters worse, the bank will now posses a non performing asset. This reflects badly on their books and inhibits their ability to lend money to produce positive cash flow.
Article by Charlotte Allred