Short Pay Refinance - Short Sale to Yourself - North Scottsdale Real Estate

For more information, visit http://www.north-scottsdalerealestate.com.

In the North Scottsdale Real Estate market, or the greater Metro-Phoenix real estate market, bubble has popped big time. During April of 2007 there were 429 sales of North Scottsdale Real Estate with an average sales price of $734,770. During April of 2010 individual sales were up to 475; however, the average sales price for North Scottsdale Real Estate was down to $455,432. Thats almost a 40% drop in value. Talk about negative equity.

If you are one of the many who are upside down on their home but you dont want to move, perhaps a Short Pay Refinance (Short Pay Refi) is for you! This little known, and seldom used, program allows a homeowner to short sale their home back to themselves. Their current lender has to agree to the terms and would permit the homeowner to short them the amount of money owed on the note. The new note, most likely with a completely different lender, will be for 90% of the appraised value of the home; meaning that the owner instantly go from negative equity to 10% equity. Their current lender allowing the short sale has to agree to participate and very few lenders are doing so. To qualify for the program you must be current on your loan and qualify for the new loan. This means that you have to have a qualifying credit score (FICO) and sufficient income. Fannie Mae and Freddie Mac do not participate and as such the vast majority of loans out there will not get to participate in this program.

The big problem with all of the programs out there designed to help cut down on foreclosure is that banks have to agree to participate and are given very little incentive to do so. To qualify for a Short Pay Refi you have to be current on your mortgage. If you are current on your mortgage what incentive does the bank have to allow you to short them what you owe? Clearly you can make your payments because you are. The key is to show them that even though you are paying now, you will not be able to avoid foreclosure in the near future.

Category:

News & Politics

Tags:

• North Scottsdale Real Estate
• North Scottsdale Refinance
• Short Pay Refinance
• Short Sale to Yourself
• Short Sale
• North Scottsdale Short Sale
• North Scottsdale Foreclosure
• Foreclosure Prevention
• Foreclosure alternative
• The Precision Team
• Taylor Lapidus
• Steven Stilllwater
• Short Pay Refi
• Stay in your home