Top Two Tips to Leaving an Underwater Arizona Home Behind

Getting Arizona short sale help can start by considering two important topics

I’m hearing it more every day, do I stay or do I go? Before you bust out in Clash tribute, let’s look through at what could help you determine whether to short sale, stay, or walk away. 

A significant amount of Arizona homeowners, despite being a drought state, find themselves underwater on their homes, meaning, the owe more than what it’s worth. 

1) But that starts with the question, just how much upside down are you? That begins with talking to an Arizona short sale realtor asap. Even though you can find some information online perhaps for sales information in your neighborhood, speaking with a local professional and getting a valuation of your homes worth is the starting point. 

Many homeowners that purchased in the last few years find that their homes are worth approximately half of what they paid for them. Now, take into consideration that although Phoenix-Metro housing prices have risen approximately 27% year over year from 2011 to 2012, how long will it take for your home to go up 100% of the value, if it’s worth half of what you paid? Beyond that, you will also have to add in commissions, closing costs, possible repairs, etc to get it sold. 

Sellers tend to get excited seeing houses prices rise, but keep in mind that is going to bring out more sellers, just like you. If you are severely upside down on the house, continuing to make payments to a home in hopes of someday breaking even, if not making a tiny profit, most likely is just not worth keeping your financial future in limbo. 

2) If you are considering a short sale, therein brings up the  topic of deficiency. Deficiency  simply means, can the bank come after you for the difference of what you owed vs what the house sales for, whether short sale or foreclosure. This can be broken down by looking not only at the type of loans you have on the house (purchase money, HELOC, etc), but in the verbiage in your short sale approval letter, should that be the route you take. Again, talk to an Arizona short sale realtor that can help you determine if you may have a deficiency, although you should always contact an attorney as well with these sorts of issues. 

If the bank approves your short sale, but wants you to contribute a hefty chunk to get the sale done, but you realize there is no recourse for you to let it foreclose, then in some cases it might be better just to walk away, and owe nothing.

And now that I have the song stuck in my head, if you’re considering getting Arizona short sale help, consider the infamous words “If I go there will be trouble, An if I stay it will be double, So come on and let me know…”

Should you stay or should you go?