Before the economic recession most people weren't even aware of a Short Sale option to sell a property. Due to the negative tax ramifications, those that did know what a Short Sale was were hesitant to explore that option. Short sale properties are few and far between now that the real estate market has mostly stabilized here in Arizona. However, there are still some homeowners who are upside down on their mortgages enough to warrant a Short Sale.
For those individuals who still aren't fully aware of what a Short Sale is, it simply means the homeowner or their professional representation contacts the bank who currently holds the mortgage on the property and attempts to negotiate a bank approved sales price which is below what is currently owed on the home. Because there are still many areas around the Country that have not recovered enough to see home values increase to pre-recession levels, there are still many homeowners underwater in their mortgage obligations...read more.