subject: The Outlook Of Short Sales In Phoenix And Scottsdale Arizona [print this page] The Outlook Of Short Sales In Phoenix And Scottsdale Arizona
As foreclosure rates hit the roof, more homeowners are short selling as a means to prevent foreclosure. This is particularly true in Phoenix and Scottsdale, Arizona. A short sale is when the seller agrees with their lender to settle on a balance that's below the amount owed on the house. As part of this agreement, the lender usually goes for this option to do away with the remaining loan. In the end, the seller won't have to suffer a foreclosure, the buyer gets a nice big cut on the price, and the lender won't have to go through all the trouble of unloading the house.
So It's All Good?
While it sounds like a win-win situation, sellers still have to be extra careful and be aware of the fact that a short sale could have a negative impact on their credit, although not as damaging as a foreclosure. In addition, lenders will often only go with a short sale if the seller is late with payments on numerous occasions and they're nearly impossible to pay off in full. The buyer will also have to go through a lot of paperwork. Otherwise, a short sale process that's done smoothly can be a life-saver.
What To Do
If you're one of the Arizona homeowners who are facing hardships in satisfying their mortgage obligations, you can still regain control. Believe it or not, your first step is to admit that you're facing a problem. Many homeowners pretend nothing's wrong until they get the foreclosure news. The sooner you acknowledge this problem, the faster you can take action.
At this point, you you'll have to speak with your lender. At times, lenders may be okay with altering the current note, lengthening the loan term, or offering a six-month leeway and incorporating those costs to the loan. This is probably only if your financial hardships don't seem permanent.
Otherwise, a short sale may be your only alternative. There needs to be proof that you can no longer afford the existing loan. This can be a real issue if in your first loan application you stated inaccurate information. In any case, an experienced certified short sale realtor may be able to guide you to the right direction.
Some Tips
There are only 3 things you need to make sure of. First, you must confirm property eligibility and obtain written confirmation from your lender that your home qualifies for a short sale. Then, you must make sure that the short sale is approved. Just because your home is qualified doesn't automatically mean the contract price and/or terms have been approved by the lender. A deal can easily fall apart in the end, so a realtor would be your best friend at this stage.
What Are Your Chances?
Let's take Scottsdale for instance. Following a consistent number of active properties for sale in the North Scottsdale real estate market, there's been just a bit of a decline recently. Within the year the percentage of equity sellers has been consistent. The percentage of properties that are listed as short sales has slowly risen within this year. On the other hand there's a gradual decline in REO, bank owned listings. These findings indicate that the sellers have obtained and given an offer to their lender for short sale analysis.
Whether in Phoenix or Scottsdale, it's a clear message that every property listed as a foreclosure can still possibly close with a short sale instead. The important thing is to have a dependable and experienced short sale professional to help you out, as the whole procedure can also be very lenthy. A short sale expert or realtor will be able to find a qualified buyer fast, discuss every specification of the short sale process to you, and convince your lender to settle with the preferred agreement.
Maureen Karpinski
Find your Phoenix Arizona Property at Cactus Country Arizona Homes & Properties
