Phoenix Arizona Investment Property

In the latest plan from the Obama Presidential administration to assist defaulting homeowners, the focus has moved from keeping homeowners in their homes to moving them on their way out of their homes through a Short Sale.

The latest program will allow property owners to sell for less than they owe and will give them a little cash to speed them on their way. Certainly a change from many of the recent proposals and programs the government has initiated to deal with our Foreclosure crisis.

The plan aims to address the concern that millions of foreclosures could delay or even reverse the economy's tentative recovery.

This new plan will go into effect on April 5, 2010 and could encourage hundreds of thousands of delinquent borrowers and Phoenix homeowners who have not been assisted through loan modification programs to sell their houses through a short sale. RealVision group negotiates on our Short Sale homeowners behalf to where the lender will agee to a settlement of full release of all claims, liabilities and obligations and that the debtor will not be responsible for paying any deficiency related to the Phoenix Short Sale loan.

Under this new program, there would be up to three payouts aimed at bringing together the first mortgage holders, second mortgage holders and the borrower in order to streamline the short sale process.

First, the first mortgage loan servicer will get $1,000 to agree to the short sale. Then another $1,000 can go to the second mortgage holder, if there is one on the home. And finally, the government would also give $1,500 in relocation assistance to the Phoenix homeowners themselves as a boost to move along.

On the bank servicer's side of the equation, the new process is supposed to be a way to promote short sales on Phoenix homes that may eventually go to foreclosure anyway and the servicer would receive more proceeds this way.

On the borrowers' side of the equation, there is the likelihood of suffering less damage to credit ratings. In addition, they will get the lender's assurance that they will not later be sued for an unpaid mortgage balance.

And finally for the phoenix real estate market, the plan is supposed to equal fewer empty foreclosed houses waiting to be sold by banks. In short, Phoenix Investment Property buyers, the good deals are becoming scarce, call today for inventory of new Arizona Investment Homes.

In addition, under the new program, a lender will use real estate agents to determine the value of a home and thus the minimum to accept. If an offer comes in that is equal to or higher than this amount, then under the plan, the lender would in theory have to take the offer.

Of course, when a homeowner has a second or even third mortgage this can complicate the short sale scenario a bit more as well and perhaps not make it quite as easy as that. In addition, lenders will also still want homeowners to prove financial hardship as a reason to short sale their home.

How quickly this new program is implemented and how effective it will be is still yet to be determined. However, as new information becomes available Phoenix Investment Property advisors will provide updates and information accordingly. If you are interested in a Short sale of your Phoenix Home, please contact today 602-762-3636.