Recent reports have spent a lot of time & effort relating the pros and cons of Arizona short sales and foreclosures. Real estate investors, bankers and brokers that dare make a "profit" from Arizona short sales are highly scrutinized, but very little attention has been given to home owners who walk away from a house and why they do so. Understanding various owner profiles can help clear up confusion and separate fact from fiction when it comes to these Arizona pre-foreclosure short sales. Here’s an explanation on who walks away, why and a few tips to keep in mind when working these Arizona short sale real estate situations.

The Misfortunate – There’s always unfortunate situations & circumstances that create havoc in people's lives. At the top of the list includes disability or severe illness of one of the owners, divorce, job loss or relocation and any other unexpected life situations which are either too significant for the family income to deal with or were not planned for. Either way, the cost of keeping the home is probably one more additional big burden in an already bad situation. Arizona Short sale investors are often a real salvation for those in the midst of a crisis. Savvy Arizona real estate investors understand what the needs are in order to create a win-win situation which benefits all parties involved.

Professional "Victim" - While legitimate unfortunate events & situations take place, some people simply learn how to use the real estate loan system for their own benefits. For instance, the media ran reports earlier in the year showing how average homeowners were unable to make their mortgage payments. One of the examples they used was a woman who had purchased a home ten years ago and she refinanced every time her home value went up. The original 15 year mortgage ballooned into an unaffordable monthly payment of quadruple the original cost due to her buying cars, vacations, furniture and other items after taking cash out on every refinance. Those that live beyond their means count on the fact someone else will eventually get them out of their bind. Arizona Short Sale Investors are increasingly the only solution to their woes (banks, brokers and others simply can't keep up with the current demand)

The Gambler – Arizona Real Estate Speculators are likened to gamblers that place a bet. Sometimes you win, sometimes you lose but either way there are times the gambler just needs to cash in their chips and walk away. Those that got in over their heads may need to unload the excess, streamline the portfolio and manage their margins in order to play the game another day. While many Arizona short sale investors are leery of doing business with a speculator, depending upon the fundamentals used to purchase the property in the first place, these can often be especially attractive ventures. Often the seller is savvy enough to consider creative deals.

The Bottom Liner - Another interesting group of Arizona home owners are beginning to emerge; the bottom liners. These conservative, financially responsible people bought within or below their financial means, made payments and are not facing a major life crisis. Instead, the surrounding property values have plummeted so much that they realize their Arizona house would have to be held 8, 10 or even 15 years longer just to break even. Increased property taxes and HOA fees, increases to compensate for those that are vacant and non-paying, are further impacting their bottom line. By walking away they can cut their long term financial losses. Plain and simple, it's purely a business or family financial decision.