Since the real estate boom of 2003-2005 the Tucson real estate market has been flooded with homes going into foreclosure, short sale homes, and bank-owned homes. Many consumers aren’t completely clear on what a short sale is, but the easy explanation is this: Whenever you are trying to sell your home for less than what you owe on it (your mortgage), it is considered being short, or a short sale.
Why would a bank want to accept less than what you own on it? Well for the same reason that banks are in the banking industry: to make money! The average foreclosure process (notices, paperwork, court proceedings, publications in the local newspapers) costs a bank on average $50,000! That isn’t including the market value loss from the house, just the cost of actually processing a foreclosure.
You can understand why banks are much more receptive to a short sale than a foreclosure (in most cases).
In many cases banks will be more open to renegotiating terms of a loan (forbearance, principal reduction, loan modification) instead of accepting a short sale.
A homeowner in distress should always call the lender first if you are having trouble making payments, or foresee trouble making payments in the future. National foreclosure statistics indicate too many homeowners are not calling their lenders for assistance and are instead falling into foreclosure.
Believe me, the banks don’t want you to lose their home and they will try hard to keep in your house.
Stay tuned for:
- Tucson Short Sales - Part 2 - I’m Ready to Short Sale My Home.. What Are The Repercussions?
- Tucson Short Sales - Part 3 - How to Short Sale My Home
- Tucson Short Sales - Part 4 - The Offer Is In To The Bank
- Tucson Short Sales - Part 5 - End Game Short Sales
If you would like to search the Tucson MLS for Short Sale, Bank-Owned, or Foreclosure homes, search my Tucson MLS or contact me for a comprehensive list.
If you would like assistance in avoiding foreclosure I can help you also, feel free to contact me for a no-cost consultation.
