Financial Lifeline

Your First Step to Selling Your Litchfield Park or Goodyear Property: Get Pre-Qualified?

Sellers get pre-qualiied?  No, it's not a misprint.  Selling a home in today's market can almost feel like going through the buying process again.  Typically when a homeowner sells a home, they don't have to deal with the bank because they are paying the loan off in full.  Usually it is when someone buys a home that they have to get pre-qualified and get an approval from the bank.  With today's economy, however, those Litchfield Park and Goodyear homeowners who owe more on their home than it is worth, and, wish to sell the property, need to get pre-qualified.


The first thing every Litchfield Park and Goodyear homeowner should do is contact a local Realtor® that specializes in helping distressed homeowners.  A knowledgeable and educated agent can assist with contacting the professionals needed to determine if a short sale or a foreclosure is a more viable choice.  The agent should advise the homeowner to speak with the appropriate real estate, tax, legal and credit experts before proceeding.

Every homeowner should know that there are numerous future financial, legal and tax implications from foreclosing as well as a short sale.  Therefore it is essential that each distressed homeowner get pre-qualified (or have their financial situation analyzed by the appropriate professionals) in order to know which route is better for their financial future.  If you determine that a short sale is the best choice, your Realtor® will assist you with getting a short sale package together for the bank(s).


When a homeowner first purchases a home, they provide a credit history as well as other financial documentation to the lender proving credit worthiness and the ability to repay that loan through monthly mortgage payments.  The lender's main concern at that point is that the buyer can afford this home and are able to pay the payments on a consistent basis.  All supporting documents were included so the underwriter could verify the information provided on the loan application.  Based on the buyer's overall financial picture, the underwriter could approve or decline a loan for a new home.

Unlike purchasing a home, when doing a short sale, the current lender now wants to know what has changed since the mortgage application was submitted that has hindered the homeowner's ability to repay the loan. The package sent into the bank is very similar to the package sent in for loan approval, only all documentation is provided to verify a hardship.  Once again the homeowner's financial situation is being analyzed.  Familiar documents such as banks statements, pay stubs, tax returns, etc., are required.  The main difference, however, is that the lender is now analyzing a package to determine if the bank will approve or decline the homeowner to sell the home for less than the amount owed.

Be on the look out for the next Distressed Homeowners Blog about the basics of the short sale process that every distressed homeowner in Litchfield Park and Goodyear should know!

"Your First Steps to Avoid Foreclosure." *

Cinda Rose, REALTOR®



Are you or someone you know facing Mortgage Troubles or Possible Foreclosure in the West Valley?  You are not alone and you have options.  Check out for more information regarding foreclosure, strategic foreclosure, and short sales that can help you make the right choice.  We specialize in real estate in the West Valley, including Litchfield Park, Goodyear, Avondale, Buckeye and the surrounding areas.