Foreclosure and short sales are becoming part of everyday conversation in Surprise, Arizona, it
seems. Many clients wonder when a short sale is really their best option. The simple answer is a
short sale is your best option if a foreclosure is pending against you. In fact, the short sale as an
attractive option (for both the homeowner and the mortgage lender) is really a direct response to
the current housing crisis.
A short sale occurs when the mortgage lender allows the homeowner to sell the house for less
than what is owed on the loan. Why would a lender agree to this? First, it allows the lender to
avoid adding another piece of property to their foreclosed inventory (which for many lenders is
overloaded already). The lender also saves time and money in avoiding the foreclosure process.
Finally, in most cases, the lender can get more money from the short sale than it can at a
foreclosure auction.
Most successful short sales occur when the homeowner is in default on the mortgage loan (more
than 3 payments in arrears) and in the pre-foreclosure process. A bank is typically more
motivated to agree to a short sale when it appears that foreclosure is imminent.
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