If you are unemployed, have bills piling up, and owe more than your house is worth, then foreclosure and / or bankruptcy may seem like the only opportunity for debt relief. Sadly, many distressed homeowners in Phoenix AZ, take this unfortunate route. Part of the reason is that Phoenix remains a down market. In the second quarter of 2010, out of the total 34,461 homes for sale to begin April 2010, 14,087 were foreclosures, which is 40.9% of the total available! The negative effect of this statistic is that foreclosures generally sell for under market value, and when 4 out of 10 houses are selling under market value, the property values decrease. As values decrease, people who owe more than their houses are worth are unable to sell in a timely manner. If you are behind in payments and owe more on your house than it is worth, you may feel that foreclosure or bankruptcy is the best way to go. What do you do if you find yourself in this situation?
The simplest and easiest way is to contact an experienced real estate professional. Real estate professionals will take your house no matter what condition it is in, will negotiate with the bank on your behalf, and can buy it quicker than waiting for the market to correct itself. Plus, you will have no out of pocket expenses during this process! No fix up costs, no holding costs, and no closing costs! When selecting a real estate professional you should always evaluate their credentials. The company you select must have licensed real estate professionals on their team, and must be an accredited member of the Better Business Bureau.
Experienced real estate professionals have creative options to help you with your problem. They can negotiate a discount from the bank by shorting the loan in exchange for a cash sale. Banks are encouraged to short their notes on distressed properties because this procedure is less expensive than foreclosure. You can also hire a real estate agent to negotiate with the bank, but real estate professionals is a better solution, as they will actually purchase your house, thus thus motivating the bank to work with them. Think of it this way; when a real estate agent negotiates a discount with the bank, the bank has to do several months worth of work in the ‘hopes’ that a agent will find a buyer. With a real estate professional, the bank is negotiating with the buyer! Based on this logic, real estate professionals have much more success negotiating with a bank than real estate agents!.
When the sale is made the bank gets the proceeds and in many cases will be for the satisfaction of the loan. This satisfaction means that the debt will be forgiven, which will prevent bank lawsuits and negative tax consequences. With a foreclosure, you may still be sued and have to deal with the IRS. Also, alternative also does not affect your credit rating as badly as a foreclosure would.
If you are behind on payments and owe more than your house is worth, you have other options that a foreclosure. With the help of an experienced real estate professional, you can not only avoid the negative detriments of foreclosure, but move on with your life much quicker.
Curt Maly is CEO of Endurable Investments LLC and Endurable Property Solutions. Located in Phoenix AZ and Austin TX. Find out more about how Endurable Property Solutions may be able to assist you when you are selling your property no matter what your unique situation is in Phoenix or Austin. Visit our website at http://www.phoenixshortsalesolutions.com/ We have local Real Estate experts and local Realtors that can assist you with any aspect in selling your property!