What is a short sale and how do I do it?
A short sale is when the net proceeds of the sale of your home are less then the amount owed on your mortgages.
Example = Sales Price - Commissions - closing costs - mortgage payoffs - taxes and other liens = a negative amount.

OK - So I have negative equity - what happens next?
One of our qualified Real Estate Specialists will go over your financial situation and determine whether or not you prequalify. We can do this over the phone - or in person by scheduling an appointment by clicking here

What do I need to have ready for the prequalification interview?
Basic prequalification questions include: Income, Expense, and questions to determine your financial hardship.
After prequalification - we list your home on our regional MLS and market it online and print advertising, just like a normal home sale.
We process the offers, send them to you and your lender for approval, and fascilitate the closing.

Do I owe taxes or other fees to anyone in regards to the loss on the home?
While most customers will be protected under The Mortgage Debt Forgiveness Act (click here) potential clients should consult an attorney or CPA for possible liability information. Contact information for attorney or CPA can be provided upon request. Arizona Law also protects homeowners with their Anti-Deficiency Statutes ARS 33-814

Why would my lender want to take a loss on my house?

In most cases, your lender would cooperate with a short sale for the mere fact that it may stave off of the inevitable, a foreclosure. It is estimated that 1 in 7 American homeowners are facing a financial hardship that my put their mortgage at risk. Most lenders feel that taking an upfront loss is better then the possibility of not receiving payments, paying for legal representation and proceedings, and then take a loss on your home.

How do we know what the lender will allow my home to sell for?
Although most lenders have their own loss calculations and procedures, it is safe to assume the following will apply: The estimated value of your home six months from today x 85% = Net amount the lender will likely take for your home. The value is determined a number of different ways. A Broker Priced Opinion (BPO), an appraisal, or an Automated Valuation Model (AVM) otherwise known as a desktop valuation. 85% is arrived by taking that value, less commissions, closing costs, junior lien settlements, HOA liens and transfer fees, and back taxes or legal fees. A six month time line is the average time from delinquency until the reclaiming of ownership by your lender, or in other words, the time frame from now until the lender would have ownership of your property back through foreclosure.

How long does the short sale process take?
Of course, individual lender's timelines vary, most major lenders are 60-90 days. Bank of America, the nation's largest holder of residential mortgages, estimate their short sale process – from listing date to closing date to the buyer at 88 days (as of March 2010). At North American Fine Properties, we find the timeline a bit shorter, at closer to 45-60 days from listing to closure.

I have more than one mortgage; what happens with the second mortgage? Do I still qualify?
The number or amount of liens on a property has no impact over a short sale. The superior lien holder, (1st mortgage), will offer a partial payoff to the junior liens to cooperate with a short sale. Remember, in the event of a foreclosure, the junior liens are wiped off of title with no proceeds. It is in the junior lien’s best interest to cooperate with a short sale to recoup a portion of their initial loan balance.