Short sale in Arizona is defined by a sale of real estate which the proceeds fall short of the balance that is owed by the borrower. A short sale in Arizona occurs when a borrower cannot pay the mortgage loan on their property. If foreclosure is eminent due to hardship the lender decides that selling a property for a loss will be more beneficial then a foreclosure or pressing the borrower to pay. Short sale in Arizona has less implications on your credit and future then foreclosure.
A short sale in Arizona does NOT mean you have to miss mortgage payments or be in foreclosure, hardship must be proven and then short sale in Arizona is granted.
A homeowner who successfully negotiates and closes a Short sale in Arizona will be eligible for a Fannie Mae backed mortgage after only 2 years.
2 years after a successful short sale in Arizona you may be preparing to purchase another home and will be required to complete the standard loan application also called a 1003, in this required mortgage application there is NOT a question asking if you have had a short sale in Arizona.
On a credit check only late payments on a mortgage will show and after successful short sale the mortgage will be reported as paid or negotiated. This will lower the score as little as 50 points if all other payments are being made. A Short Sale’s affect can be a brief 12 to 18 months on your credit report. A short sale in Arizona is not reported on a credit history. There is no specific reporting item for “short sale‟. The loan is typically reported “paid in full, settled.‟
If security clearances are required in your line of employment a short sale in Arizona is NOT reported on credit history therefore this is not a challenge to employment or security clearance.
In a successful short sale in Arizona the deficiency and junior liens are removed from a borrower through specific language and payoffs that are put inside the approval letter that is delivered for instructions to close escrow. This is case by case and contacting your Certified Distressed Property Expert will help you get more of an understanding on this.
Avoid foreclosure in Arizona. There are short sale programs in Phoenix, AZ that you may qualify for. Learn about your home loan options and selling a property for settlement of a debt owed to a lender
