by Chelsea Schneider Jul. 16, 2008 11:37 AM
The Arizona Republic
There are two basic criteria homeowners should meet to know if a short sale is right for them:
• The homeowner is not able to afford the mortgage payment.
• The homeowner owes more than the property is worth.
Travis Hamel Olsen, president of the National Short Sale Center based in Scottsdale, said short sales are growing “like crazy” but numbers are hard to track because it depends how the seller lists the property in the Multiple Listing Service.
There are about 1,500 to 2,000 short sales on the market in the Valley, more than double the 700 last year at this time, Olsen said.
“Really there should be so much more,” Olsen said. “It’s the best way for people to avoid foreclosure.”
A short sale is xvideos when the lender agrees to take less money for the house than what the seller owes. The seller generally has to be significantly behind in payments. The bank forgives the seller the difference but the seller walks away with no money and a credit hit.
Olsen said most short sales come from homeowners with adjustable-rate mortgages or subprime loans, but people with traditional loans are now seeking short sales as well.
Randy Lewis, with Short Sale 1000 and RE/MAX Professionals, said he’s getting more short sales approved than ever. Success rates have increased to 70 to 80 percent.