Selling Your Home When You Need Cash Fast

Have you ever heard the phrase “I can see light at the end of the tunnel?” If you are in financial straits, and realize you’ve got to get out from under the burden of your home mortgage, you may think “I can see light at the end of the tunnel, and it is the light of an oncoming train!”


Few things are as stressful as serious financial problems. Our homes are usually our most significant financial investment, and when ‘life happens’ your mortgage can feel like a ball and chain around your neck. Life happening may be an unexpected divorce, or loss of job. It could also be astronomical medical bills that are siphoning off your monthly income. Maybe you bought your home at the height of the real estate boom and now need to relocate and you can’t get the money out of your home you need to pay off your mortgage to the lender. Regardless of the reason why, at Desert North Realty, we can help walk you through the intricacies of a ‘short sale.


A short sale is a strategy in place of a foreclosure on your property. The foreclosure process is long, extremely stressful and wrecks your credit. On the other hand, a short sale is a situation where the bank lets the delinquent homeowner sell the property for less than what is owed. The homeowner finds an agent and puts the house on the market for a substantial discount. If the home sells, the lender recoups the majority of what you owe on your home.  It doesn’t absolve you from the debt on the original mortgage, but we believe it is much better than a foreclosure.


Why would lenders accept a short sale?

It is a matter of practicality. Let’s say a bank has a mortgage for your $300,000 home. You are no longer able to pay your monthly mortgage. You agree with the bank on a short sale of $250,000. Yes, they are not getting paid back in full (with the accruing interest) but they don’t have to go to the expense they will encounter in a foreclosure. That includes legal fees and filing fees, and having a vacant home on the market that gets less valuable the longer it sits empty. Between the lower sale price they receive at auction and the resources they have to assign to administer the foreclosure, they rarely come out ahead on the deal. Plus, banks and other lenders don’t want to be in the real estate business, so making it easier for them to move the home on to the next buyer is advantageous for them in the long run.


On average, it costs a homeowner $7500 to work through a foreclosure. There are also additional costs that can occur during a lengthy foreclosure process, so for the lender and the borrower, it is best to be avoided, which is why our team likes the idea of helping you through a short sale.


Choosing foreclosure means choosing a mailbox filling up with confusing legal documents. The stress of trying to work through it can be overwhelming. Homeowners feel completely at the mercy of those who are coming after them with legal filings and demands for payment. On the other hand, a short sale allows the homeowner to play more of an active role in the process, dealing with the bank, the home buyer and real estate agent.


Another reason to consider a short sale versus a foreclosure is avoiding scams and con artists. There have been a number of scandals related to foreclosures over the past few years, involving con artists offering money-back guarantees and promises to save your home from foreclosure, in exchange for access to your funds. Oftentimes, the stressed homeowner ends up with not only the foreclosure, but a drained checking account as well.


What documentation will I need for a short sale?


Why Should I Consider Desert North Realty For My Short Sale?

For a homeowner who absolutely must sell their property in order to keep their financial heads above water, at Desert North Realty we strongly believe in the value of a short sale. In fact, we are committed to making you aware of any tax or deficiency issues you may face. We know you need experiences professionals to make this difficult time as smooth as possible. We educate our agents on all new policies and changes in the short sale process, and provide you with expert counsel as you move forward. We know you are in one of the most stressful times of your life. Let Desert North Realty be a calming influence as we help you navigate the choppy waters of this stage of your life. Call us at (480) 405-6464 and let us know how we can serve you!