What is a Short Sale?

A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed. 
If you owe more than your home is worth, please call us to inquire if you qualify for the short sale process.

A short sale requires the approval of the Lender(s), PMI company or government agency, (a third party).  The reason the third party must approve the terms, the purchase price & closing costs is because they will be accepting less money than what they are owed and paying the closing costs.  This all takes time & most negotiations are handled by the Listing Agent.  It is imperative that you have an Agent who is familiar with the short sale process & able to negotiate with the third parties.  We have experience with this for both Sellers and Buyers.  There is additional paperwork that must be submitted by the Seller to the Bank once an offer is accepted as well.  You don't want to get lost in the shuffle!

The Seller still owns the property, therefore, the Seller is the only person/persons whom can enter into contracts to list & sell the property, and is always subject to the third party's approval.

Most importantly whether you are purchasing or selling a home on a short sale, you must have patience.  When you submit an offer on a short sale it can take 3 - 6 weeks before you have a response from the Bank, sometimes longer. 
A Bank owned property, (REO), can take anywhere from 2 business days to several weeks to recieve a reply.

What is a foreclosure?

A foreclosure is referred to as an REO, (Real Estate Owned), in the real estate industry.  In todays declining AZ - (Phoenix and surrounding areas) - most trustee sales are unsuccessful because there is more owed on the property than what it is worth, attorney fees, accrued interest and other costs all add up and are included in the bid price. Nobody bids on the property at the sale, and the bank ends up foreclosing on the property and it becomes an REO.  If you do bid and win the bidding process you must have a cashiers check for the bank and accept the property as-is ... sometimes along with it's occupants and other liens.

Once the Bank owns the property, they will change the locks, evict ocuupants if needed, sometimes clean up and do some repairs. The majority of Banks want to sell the property AS IS.  It is imperative, as a prospective Buyer, to have inspections on the property, and an inspection clause to get out of the contract in case something is found that could be expensive to repair or damaged to an extent that is irreversible.  Banks will allow you to make inspections at your own expense and sometimes will make repairs, so, before cancelling your contract, ask your Agent to submit a repair request.
 
There are many questions a Buyer's Agent should ask the Listing Agent before making an offer on a foreclosure, this is where your Agent's knowledge and experience will help you to make informed decisions. 

The Bank has usually had an appraisal done on the property and one or two Broker Price Opinions (BPOs).  Therefore, the  Bank is confident they have priced the property agressively. This is where our expertise comes in to help our Buyers determine what to offer.

Purchasing an REO or Short Sale property can be a good investment, if you are willing to put some hard work  and sometimes just a little tender loving care into the property. 
We have a list of tradespeople that are reliable and dependable.
Again, patience is a must.  Some of the Banks do not respond quickly - your offer is reviewed by a team of Bank employees -  hired specifically to manage their bank foreclosures and they are, sometimes, overwhelmed and understaffed.

CONTACT US IF YOU ARE CONSIDERING PURCHASING A FORECLOSURE OR SHORT SALE

If you are considering purchasing a foreclosure or Short Sale home, please call us or click on the "Contact" or "Request Info" tab to email us.  We can set up a portal aka as a personalized web site direct to your email box, which will update you daily on the bank aquired homes new to the market from the MLS.

FACING FORECLOSURE - PERHAPS WE CAN HELP

If you are a Seller, and cannot make your mortgage payments, you may very well qualify for a short sale or loan modification.  You do have options, and don't have to have a foreclosure on your record. Call us, or click on the "Contact" or "Request Info" tab to email us.
We have also linked a web site for the loan modification and stimulous plan which may answer some or possibly all of your questions. We want you to know you have options and can avoid foreclosure. 
Any contact with us is completely confidential, it is a tough time for many, our goal is to relieve some of your stress, and hopefully help you find a way to stay in your home and avoid foreclosure.