Foreclosure or Short Sale?

San Diego Foreclosures For Sale

In June 2009 there were over 16,000 new foreclosure filings with a total of over 101,000 for the first six months of 2009. This figure is continuing to rise because many homeowners are unable to meet their mortgage payments each month. In the majority of cases this problem is out of their control. In the current economic climate many people are losing their jobs making it impossible for them to meet their living expenses. In the US more than 535,000 jobs were lost in April of 2009 and although the rate of job losses is levelling off, there really doesn’t seem to be an end in sight. In Phoenix, Arizona nearly 75% of homes for sale in June 2009 were foreclosures. An increasing number of homeowners are using a short sale to extract themselves from the foreclosure procedure.

When a lender issues a foreclosure, there are certain steps he needs to complete, according to the laws of Arizona. The process begins when the lender files for foreclosure. Filed with the court are the actual debt and the amount of the default. The homeowner has to be notified either in person or by publication. If the homeowner does nothing, the court can rule against them in their absence. The court then directs that a sale of the property must occur for the lender to recover the amount owed. For court foreclosures, the sale is conducted about 45 days after the court directs the sale

As soon as a foreclosure notice is issued the homeowner must take steps to stop it from reaching a conclusion. One way to do this is to consider a short sale.  This is a process that involves persuading the lender to accept less than is actually outstanding on the loan. This process is a very time consuming and complicated one but, if it can be successfully negotiated, in most cases the homeowner can walk away without any additional costs. However, if the amount of the sale at foreclosure does not meet the debt, the lender can sue for the difference. But, in the State of Arizona, this is not allowed on single one or two family homes of less than 2.5 acres.

For most homeowners the complex process of negotiating a short sale would not be an option. So the solution would be to find a reputable Short Sale Investor to negotiate on their behalf. A Short Sale Investor has all the necessary experience to negotiate with the lender in order for an agreement to be reached. His expertise in this field means that the bulk of the work in done by him. It will be necessary to provide him with a lot of information about your financial situation in order for him to put together the best possible argument so your lender will accept your application for a short sale.

You may have given up on the prospect of holding on to your home but negotiating a successful short sale means you can walk away from this with dignity and begin to look forward