Refinance or Short Sale? Why its a Good Idea to Consider Both!

You may not know it but we are currently experiencing a time in Real Estate that has never existed before…EVER.  The market was so hot in 2004-2006, then the market crashed in August in 2007 with interest rates in the 6.5% range.  Housing values took a huge dive!  Some markets were hurt more than others.  At the time I was working as a Title Sales Rep for a National Title Insurance Company in Phoenix, AZ.  If you know anything about the Phoenix market…the property values went up 47% in 2005 alone!  Well what goes up must come down and when the market crashed and the subprime market went bye bye so did the home values.  Let me give you a real life example:  In July 2006 I bought my first home…a condo next to the Raven Golf Course in Phoenix for $145,000.  I was happy with my purchase and no issues making the payments.  By January 2010 the value of my property was $35,000!  Yes…$35,000.  So I did what 75% of the housing market did in Phoenix, I listed my home as a short sale and said…”See ya later!”  I know I made the right choice knowing the value might not ever return to what I owed on the property.  So back to my original statement…we are in a weird place in Real Estate…a time that has never existed before that presents SOOO many business opportunities for Real Estate agents AND Mortgage Lenders.  Here is why if you are considering do a refinace or short sale…might be good to do both.  Let me explain…