Short Sale Foreclosure | Avoid Foreclosure Arizona | Arizona Foreclosure Prevention

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Avoid Foreclosure - Use a Short Sale

How to avoid foreclosure in Arizona

Never have the words "time is of the essence" been more appropriate than when you're facing foreclosure. Green Street agents are educated and experienced in dealing with the foreclosure process and can help you find the best solution to avoid foreclosure. Your best bet for reducing your financial burden is a house short sale. Foreclosure is not the only way to get out of a mortgage that has become financial unmanageable.

Don't Pay for Foreclosure Assistance

You have more to lose than just your home if your transaction isn't handled by an expert team the right way. If you can't afford your mortgage payments and you need to sell your home, our short sale process, designed by our short sale realtor specialists, is what you need. If you're considering selling your house, and you expect that the total amount you owe on your loans will be greater than the sale price of your property, you may be facing a situation where a short sale makes a great deal of sense.

Why Consider a Short Sale?

When facing a financial hardship with your mortgage, there are always several choices to consider. The following sections explain why it is often wise to consider a short sale. Foreclosure can cause greater damage to your credit and include a longer financial recovery time.

Short Sale vs. Foreclosure

Short sale vs. foreclosure is a decision many underwater homeowners are faced with. A foreclosure is possibly the most damaging credit consequence of all the options when facing a hardship with your mortgage. Not only do you lose your property, but you are generally responsible for the entire difference of what you owe versus the proceeds from the sale of the foreclosed home. In a foreclosure, there are additional attorney and court fees for which the homeowner will generally be responsible. The lender will generally file a judgment for the amount owed, and you will usually be required to repay the judgment before any other credit will be extended to you (i.e. - No more cars, credit cards, mortgages, student loans, etc). Also, even if you pay the judgment back to the lender, most mortgage companies will not be able to lend you money for a mortgage for at least 5-7 years. It is possible to avoid some of these downsides with a short sale. Foreclosure, however, can be difficult from which to recover.

Break Even Calculator - How long will it take me to breakeven? Should I do a short sale or a loan modification?

Short Sale vs. Loan Modification

Many borrowers are facing financial hardship due to their inability to keep up with their mortgage payments and, in turn, are looking to modify their mortgage. Although this option may make sense for some borrowers, the reality of a loan modification is this: Loan Modifications generally do not reduce your principal balance, only the rate or payment. They generally allow the borrower only enough room to survive when they consider the repayment plan payments and your budget. If the wrong financial information is sent into your Lender, you may end up accidentally eliminating the short sale as one of your options! Also, most companies that offer loan modifications will usually charge anywhere from $1,500 - $3,000 to perform their services, and may not even succeed.

In 2007, a temporary measure was passed called the Mortgage Forgiveness Debt Relief Act and Debt Cancellation Act. Many homeowners can exclude debt forgiveness on their federal tax returns from income for loans discharged in calendar years 2007 through 2012. Having a portion of your debt forgiven may have an adverse effect on your credit score. However, a short sale will impact your credit score far less than a foreclosure or bankruptcy, and usually does not have the same consequences when applying for credit in the future.

Loan Mod Analyzer - Do I qualify for a loan modification?

Contact us today so we can discuss your particular situation. We're here to help. When preserving your credit is the plan, one of the best options is the short sale. Foreclosure will remain on your record for years to come and damage your credit rating. A short sale is far less damaging and will reduce the long term credit effect.

Major lenders are moving towards working harder on short sale negotiations instead of taking properties back through the foreclosure process. Fannie Mae and Freddie Mac are even changing their policies so that a foreclosed homeowner will have to wait 5 years before a new loan can be underwritten in their name.

When your property is sold through the house short sale process, the outside world sees it as a true real estate transaction. There is no embarrassment, there is no eviction notice placed on your door, and the Sheriff's office doesn't show up at your door waiting for you to evacuate. The behind the scenes dealings are complex, but that's why you want us as your team of experts to handle this for you. Allow our Arizona short sale realtor specialists to help you, as getting back on your feet faster is possible with a short sale!