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Foreclosures and Short sales
In the current Tucson real estate market there are an abundance of short sales and foreclosures. The most common reasons that homeowners are going into foreclosure is that they bought the home a few years ago, and then the market went up dramatically, so during that time they refinanced their home. Then the so-called bubble burst and prices started to drop. So, now the homeowner owes more for the home than it is worth, and some things happen were they can't pay the mortgage. A short sale is when the owner of a property sells it for less than they owe with bank approval. A seller can also have a short sale, even if they have never missed a payment but the property is worth less than the mortgage amount. However, I have heard that most banks will not consider a short sale unless the owner is behind on their payments, not to say you should stop making payments just be aware of that.
There are a few options when someone is behind on their payments:
Talk to the mortgage company to see if they can restructure the loan or do something to help the owner. Have a company like Hope Now ... more
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