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Should you go for an FHA Short Sale?

Posted by Mark Taylor | Posted in Arizona FHA | Posted on 23-11-2011

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With the economy stuck in a seemingly permanent nosedive, it’s not surprising that many home owners are now looking for possible ways to save their own homes from foreclosures. An FHA loan and VA home loan can only do so much. This is because that is what they are – loans. The real estate market drives home the fact that there is no such thing as free money, a fact that many home owners know all too well. Even VA loans requirements consist of a lot of paperwork to ensure that you pay back the loan in time even if the Veteran’s Association looks favorably upon former members of the military.

Needless to say, home foreclosures are rampant. However home owners can always choose to utilize the FHA short sale process to prevent that from happening if they currently have an FHA loan.

What is a Short Sale?

If the balance owed on property’s loan falls short than the actual sales proceeds, then that sale is considered as a short sale. A short sale is often deemed necessary when a borrower is unable to pay off the mortgage on a property. At this instance, the lender agrees that the property would be better sold off at a loss than not at all instead of confronting the borrower for the rest of the initial sales price. In other words, lenders feel inclined to resort to such measures since they feel that their borrowers might not be able to pay the full amount of the agreement anyway. This also prevents any foreclosures on the borrower’s home.

However, just because lenders can do so does not mean that they let borrowers get off scott free. They may still obliged to pay the remaining (albeit reduced) balance on their mortgage loans. However under a FHA Short Sale this will not be the case!

FHA Short Sales

One of the most convenient uses of an FHA home loan is the FHA short sale options that come with it. The reason they are so convenient is because they are regulated by a systemized process that is regulated by the HUD (Department of Housing and Urban Development).  Lenders are also supposed to conform to these policies. This short sale process is called the FHA Preforeclosure Sales Program

If you have used a FHA home loan and need to use an FHA short sale you need to know that you should already be occupying the home at the time of the short sale. This policy can be waived if you are unable to live in the property because of some (valid) reason such as forced relocation.

If you happen to live in Arizona or California or know someone who does and needs an FHA short sale you can go to www.azshortsalesdoneright.com. click this link and look for the FHA PreForeclosure Program link on the left and get all the forms and process planning that you and your agent will need to complete a successful FHA Short Sale

The Good News about a PFS is that it can be a very simple, streamlined, and more dignified process than a traditional short sale resulting in a very quick process with very little buyer fallout. Thanks for reading my article on Should you go for an FHA Short Sale?

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Mark Taylor | Arizona Home Loans | Blarming | Will You Listen to Me | Arizona Short Sales | Arizona Foreclosures | Arizona FHA Loans | Arizona USDA Loans | Arizona HUD Homes | Ariona VA Loans | Arizona Mortgage | Arizona Short Sale | Power Ranch Bank Owned Homes

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