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Short Sale to Combat Phoenix Foreclosure

October 28th, 2009

A short sale typically is executed to prevent additions to the Phoenix foreclosure list, but the decision to proceed with a short sale is predicated on the most economic way for the bank to recover the amount owed on the property. Usually a bank will allow a short sale in Phoenix if they believe that it will result in a smaller financial loss than foreclosing because there are carrying costs that are associated with a foreclosure.When it makes no business sense or is economically not feasible to retain an asset, businesses default on their loans, which are called bonds. It is not uncommon for business bonds to trade on the after-market for a small fraction of their face value in fear of the likelihood of these future defaults.

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