Is A Short Sale Better Than A Foreclosure In Arizona?

Recently, local Realtor Dean Ouellette sat down with Kevin Hardin of Thomson Law Dean Ouellette to discuss whether or not a short sale is better than a foreclosure in Arizona and how a short sale may be better for most sellers compared to a foreclosure.

There are many questions surrounding a decision between doing a short sale on your home or waiting for a foreclosure to occur.

Which is better for you as a homeowner?

Kevin Hardin explains to us exactly what some of the differences are, and you may be shocked. A short sale is almost always better for the home owner than a foreclosure and you can control your outcome a lot better if you are in control of the situation.

Kevin Hardin and his co-workers at Thomson Law advise thousands of home owner a year on the differences between a foreclosure and a short sale  and as Kevin explains maybe 1% of the time a foreclosure is the best alternative.

If you are looking to do a short sale  and want to consider your options make sure you check out this video because many of the questions you have will probably be answered. Just because the bank may not have the right to come after you in a lawsuit does not mean they will not try. And if they do try, you may win, but it is not going to be a cheap win. With a short sale  you get to determine the ground rules and only have to agree to it if you get acceptable language negotiated with the bank.

As always make sure you talk to an attorney and your CPA about your situation as your situation may vary from other cases.

44 Monroe Units Selling Soon

At least one of the larger urban developments in Phoenix is going to start releasing units to be sold — the highest residential tower is 44 Monroe and is located on 1st Avenue & Monroe. It is close to pretty much everything-there-is-to-do in Phoenix including sports arenas, theaters, shopping, fine dining and of course the light rail.

44 Monroe has 8  levels of secured parking, a pool and spa on the eighth floor with gorgeous mountain and downtown Phoenix views. Other amenities include a fitness center, business center, community center and conference room.

The reason that this is interesting is it wasn’t all that long ago when 44 Monroe was headed into foreclosure and the hopes of having “affluent condo dwellers” were going down the drain.

Since the units were on hold for a period of time while the financing problems were sorted out — does this mean that people will be back to buy?

Probably.

Only at a much lower price than they were a year ago.

And with several of the units at 44 Monroe showing that they have recently expired in the MLS or were changed to “temporarily off market”, this market is in flux. Pricing used to range from the 300’s to over $2million.

But with the first of its kind coming out of financial troubles, it will be interesting to see what the new pricing looks like.

Popular Reasons People Refinance In Arizona

Popular Reasons People Refinance In Arizona

What are some of the most popular reasons that people in Arizona refinance? Well, there are probably hundreds or thousands of reasons that someone refinances their home — but I thought I would take a look at 3 of the more popular ones:

  • Mortgage Rates Go Down
  • Lower Payments
  • Get A New Mortgage Program

Mortgage Rates Go Down

Whenever interest rates go down, people rush to refinance — that is until recently… most people who refinance for this reason have already refinanced here in Arizona. The lower the interest rate on your mortgage, the lower your monthly payment — and the less interest over the life of the loan that you pay.

Lower Payments

In addition to lowering the interest rate on your mortgage, another way to get a lower monthly payment is to increase the loan term. By going from 15 years to 30 years, you can lower your payment.  You can also refinance out of an FHA loan into a conventional loan to get rid of mortgage insurance — which is another way to lower your payment.

Get A New Mortgage Program

The most popular thing to do when switching mortgage programs is to go from a fixed rate mortgage to an adjustable rate mortgage.  There are other reasons that people switch from one program to another, but this one is the most common in today’s environment.

Debt Consolidation

If there is sufficient equity, sometimes paying off consumer debt by combining all debts into one lower monthly mortgage payment can significantly reduce the short-term deficits in a budget.  However, it’s important to keep in mind the total cost of that debt by adding it into a 30 year mortgage payment.

Are you in a situation where you don’t know if refinancing makes any sense in your situation? Be sure to call us to find out.

This site is for informational purposes only. It is not sponsored or in any way affiliated with the government. If you are in need of a mortgage loan, consult with a licensed mortgage professional. All fair housing and equal housing opportunity laws apply when applying for a mortgage or buying a home. Copyright 2012.