There are many pieces to the Phoenix, Arizona short sale process that must be executed well when attempting to save a homeowner’s credit and short sale their home. This article was written to highlight some of the more common responses from banks when negotiating an Arizona short sale. Keep in mind that every bank has its own set of rules and policies. Moreover, strategies that work with some banks will not work with other banks. In other words, there is no exact science to getting a Phoenix short sale approved, but having the right Phoenix short sale team with real life experience will help greatly.
One of the more common responses that I have heard from banks when attempting to negotiate an Arizona short sale or Phoenix short sale is that the bank “will not negotiate and take a loss”. Obviously no bank wants to take a loss on a loan. Often times the bank will state that their written policy is not to negotiate with delinquent payments and or to agree with an Arizona short sale. They will usually say that if the homeowner cannot continue to make payments on the home, then foreclosure is the only other option. These responses are much more common when the homeowner is not behind on payments and the Phoenix short sale agent initially contacts the bank. Banks will then assess the situation and see how dire the financial crisis is. In my opinion, if you attempt to negotiate a Phoenix short sale when your mortgage payments are current, odds are that the bank will say they won’t negotiate.
I don’t blame them, in their eyes you are seen as a homeowner who can still financially afford the home. But on the other hand, I tend to see a different tone with banks when negotiating a Phoenix short sale when the homeowner is 3 months behind. The banks seem to realize that the financial crisis with the homeowner is legitimate and that there is no other option. Although being behind on payments can help with a Phoenix short sale, there are still banks who won’t negotiate at this point. But, within the last 6 months, I have noticed that more and more banks have become easier to deal with. In fact, many banks have done a noble job in reacting to the nation-wide financial crisis by adding more support staff for short sales in Phoenix, Arizona.
Yet, there always seems to be a few banks that claim they still won’t approve a Phoenix short sale or take a loss regardless of the payment history. But, these same banks have instantly changed their policy in front of me when the homeowner has opted for bankruptcy. I have dealt with banks that claim the decision making is “out of their hands” all the way up to the point where word “bankruptcy” is mentioned. At this juncture, almost all banks have agreed a Phoenix short sale and taking some sort of loss with their loans.
I am not advocating or recommending that a homeowner should intentionally fall behind on payments to increase the chances of getting a Phoenix short sale approved. Nor am I encouraging homeowners to file for bankruptcy in an effort to short sale their home. Before making any decisions regarding a Phoenix short sale or Arizona short sale, please contact real estate attorney.
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