Though it is not a wonderful situation to be in, you should not be afraid to consider making a short sale on your Phoenix home. If you find yourself in a position where you are no longer able to make the minimum monthly mortgage payments, then your two main options are either foreclosure or a short sale. Obviously most people want to avoid foreclosure, so one way to be able to avoid the harsh credit and financial consequences of home foreclosure is to try and arrange a short sale with your lender. This means that they would allow you to proceed with a property sale that falls short of the balance owed on the original loan. Though not all lenders in Phoenix will be willing to do a short sale, for some companies, this is less hassle and headache than going through with a foreclosure.
If you are considering asking for a short sale, then you should be aware that there are some drawbacks to the arrangement. First of all, people looking for homes in the Phoenix area who notice that yours is listed for an extremely low price might not be interested in this type of transaction. Secondly, even if you do find a person who is willing to pay the price you have listed it for, this does not guarantee that the lender will accept those terms and let you sell the property at a loss. There are other situations, where the home owner is current on payments, but that the value of the house itself has fallen so low (because of neighborhood issues or the economy, for instance), that they are willing to let you sell it before the value continues to decrease. Overall, however, this might be a good option for both lenders and borrowers who realize that the current financial arrangements are not feasible to continue and are willing to make arrangements to avoid the fees involved in home foreclosure.