Much has been made of short sales and foreclosures in the state of Arizona. People generally argue which is better and often bring the topic of bankruptcy in their conversation. This post will be relatively short considering the depth of this overall topic of Arizona Real Estate. Some key differences between a short sale and foreclosure are the credit reporting, a foreclosure will do more damage to your credit score and for a longer period of time. Your eligibility to get another loan (conforming loan that Freddie or Frannie would buy on the secondary market). If you are foreclosed on a home, then you cannot get a conforming loan for FIVE (5) years! A short sale will only cost you TWO (2) years. In a foreclosure, if the lender (usually the second if it is a HELOC or a cash out refinance) has a right to a deficiency, they can still try to collect from you after a foreclosure. In a short sale, it is sometimes possible to have both or at least the second lien holder to put in writing they will NOT pursue the deficiency! There are three valuable reasons to entertain a short sale instead of a foreclosure. I did not discuss a "Deed in Lieu of Foreclosure" because lenders generally will not accept those without first trying to do a short sale, and a Deed in Lieu will leave that lender responsible for all other liens on the property.
Contact Marie Zubkoff 480.233.7051 or Andrew Walsh 602.527.2639 for more information on a short sale. If you need a referral to a qualified CPA or Attorney, call us we can get you help. http://yourgilberthome.com/
