What is a Short Sale?
Simply put, a short sale is used to describe the sale of a home in which the homeowner owes the bank more than the home is worth. The bank agrees to allow the home to be sold for less than what is owed. 

Would I qualify for a Short Sale?
There are 2 main qualifications for a good Short Sale candidate…
(1) A good Short Sale candidate is a homeowner who is behind on their mortgage payment and is unable to keep up with all of their monthly obligations. Some of the reasons for falling behind on their mortgage payment may include sudden change in monthly household income, loss of job, divorce, and more.
(2) A good Short Sale candidate also has no equity in their home. They are not able to sell their home and pay off all of the outstanding loans that are secured against their property.

How do I select the right team to successfully manage and negotiate my Short Sale?
Before hiring just any 'Agent' to assist you in a Short Sale, make sure they are qualified and understand all the work that is required to see you through to the end. Agents with CDPE certification are the ones who have gone through extensive training on short sales and properly trained on how to qualify the sellers and successfuly close the transactions. A typical Realtor's success rate on closing Short Sale Transactions is around 30% to 50% where CDPE agents close over 90% of transactions.

What does "CDPE" stands for?
CDPE stands for "Certified Distressed Property Expert" which is a Nationaly Known designation and recognised by all lenders.

How long does it take to do a Short Sale?
Depending on the bank and number of loans, short sale approvals take anywhere between 2 to 5 month to complete.

What if I don’t have money to pay the Realtor commissions?
While there is a small up front fee for our out of pocket marketing and negotiation expenses, you as the seller do not have pay the Realtor commissions.

Are there any tax ramifications to a Short Sale?
Arizona is a non-deficiency state but you need to consult with a real estate attorney to make sure about the consequences. 

Are there any credit consequences to a Short Sale?
The first thing to keep in mind is that the moment you go 30+ days behind on your mortgage payment, your bank has the right to report to all of the credit bureau’s and it does have a direct affect on your credit. After going through a Short Sale or a Foreclosure, most people have multiple 30, 60, and 90+ day late payments reporting on their credit report. When the actual Short Sale is completed, most banks will report to your credit report that your account was “paid in full for less than the full amount.” Your credit report may also be marked as “settled.” It is important to keep in mind that each lender has a different way of reporting that a Short Sale was done, but this is the most common language that is seen. However, short sale has much less negative effect on your credit than a foreclosure.

Why exactly would a bank agree to a Short Sale?
It is much more cost effective for a bank to do a Short Sale rather than Foreclose on a home. Banks are not interested in owning real estate. Banks make their money from receiving monthly mortgage payments. While banks will take a loss doing a Short Sale, they can often minimize their loss by as much as 10-20% over a Foreclosure.

Can the bank sue me or place a judgment against me for the difference between what I owe and what the home sells for?
This is a good question that is best answered by a qualified Real Estate Attorney. What you should know is that Arizona is what most people refer to as a “Non-Judgment Deficiency” state. What this means is that generally speaking banks cannot pursue you for a deficiency judgment. For more specifics on this topic, please refer to the Arizona Revised Statutes and consult a qualified Real Estate Attorney. It is also important to know that most Home Equity Lines of Credit (HELOC) are not just secured to your home, they are also personally “backed” by you. What this means is that even though your HELOC bank may agree to do a Short Sale or Foreclose on your home, they still may attempt to collect on your account – even after the Short Sale or Foreclosure is complete.

When should I start working on the Short Sale?
Ideally we would like to begin working on your Short Sale as soon as you recognize that you are unable to keep up with your payments and will be falling 30+ days behind. The important thing for you to know and keep in mind is that the sooner we begin working with you on the short sale process, the more you increase your chance of a successful closing. Don’t wait any longer, act today by submitting this form to get the process started!