Selling A Home In A Short Sale

The highest number of properties sold as a short sale in the Santa Cruz County, AZ market peaked in 2012 and since then short sale transactions have declined year after year due to property values rising. A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.Depending on your financial and legal situation, a short sale may be an option for a homeowners who are “upside down” on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially. 

Seller Must Have a Hardship

Banks may grant short sales for 2 basic reasons: the seller has a hardship, and there is not enough equity in the home to pay off the mortgage after paying costs of sale.

A few examples of a hardship are:

  • Unemployment / reduced income
  • Divorce
  • Medical emergency
  • Job transfer out of town
  • Bankruptcy
  • Death
This  web site page provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney and a CPA.