If you’re in the market to buy a property, there are certainly advantages to pursuing a Short Sale – generally, you can get the sellers (current owners) to give you information about the property, and if they have been living there, you are probably more comfortable that the house has been maintained.

There are also downsides to purchasing a Short Sale – the most immediate being that the process of getting approval from the seller’s lender can be lengthy.  Sometimes, you can be in process waiting for approval when the seller’s lender decides to let the property go to foreclosure.

Why, you ask, would the lender foreclose on the property when they have a willing buyer?  There can be many reasons:

• If there is a second loan, they may not be prepared to pay the second lien holder as much as they want to discharge that second loan.
• The end investor (which may be a credit union, insurance group, private individual or other) may be unwilling to accept the bottom-line amount they would net from your offer.
• If the loan has PMI (private mortgage insurance) tied to it, they may get more by foreclosing and then recouping the money from the mortgage insurance.
• If the loan is backed by federal mortgage insurance (it is a Fannie Mae or Freddie Mac loan) they may also net more by getting reimbursed by those entities.

If the bank forecloses, can you still buy the house?  The answer is “Yes”, but you may have to play a waiting game.  Some banks will speak directly with your real estate agent, who can negotiate with them on your behalf.  Many other banks will not consider an offer until they have gone through a process of getting an updated Broker Price Opinion (BPO), and assigning the listing to a local real estate agent, who will place the house back in MLS as an Active listing.  This process can take anywhere from 30-90 days.

What can you do to make sure you know when the house gets re-listed?  Ask your real estate agent to set up a “search” for you in the MLS that will notify you via e-mail when the property is placed in the MLS for sale.

The good news?  The price of the property is generally lower when it is re-listed as an REO (real estate owned) property.

What IS your best weapon when attempting to buy a Short Sale property?  You probably think I’m going to say your Realtor – but that’s really your second best weapon.

The most important thing you can do if you’re considering or in the midst of buying a Short Sale property is to have patience!

Keep in mind that there are more people and more paperwork involved in a Short Sale – and everyone involved needs to believe this is a good deal for them – the seller, the bank (or banks, if there is more than one loan), and you.

The length of time to get bank approval for a Short Sale has definitely improved, but it still takes longer than a traditional sale – so keep your cool, maintain your patience, and keep your eye on the prize – the house of your dreams!                            

We have all came to the realization that short sales are now part of our daily vocabulary. We hear the questions being asked at the grocery store about if one should buy a short sale. It is talked about with the neighbors, on the golf course, at dinner, etc. Who is not talking about short sales these days?

Short sales can be a great deal for an investor or a homebuyer looking for a good deal. The trick is to understand there are a lot of variables going into the transaction that can go south and make the whole short sale fall apart in the matter of minutes. Don’t move your furniture in until you have the approval letter!

Ask your Realtor questions to educate your self on how successful the transaction can be. Is there a Lawyer negotiating the short sale? Is there more than one lien on the property? Sometimes you can find out what your odds are based on this. It is easier to negotiate and get approval on a short sale when there is only one lender to deal with.

The best part about a short sale is getting the property below market value. This does not happen on every short sale but it certainly does happen. Short sales can be done in a much shorter time frame now than they were a year ago. Generally a short sale can be completed in 60 days.

If you have the extra time to wait and your financing is in place I would suggest making an offer a little below market value to see what kind of deal you can get. If you have questions please feel free to call me, I have a great understanding of the Scottsdale AZ market.

Wanting to sell your home? Not certain of which path to take? The dilemma faced by all homeowners, as well potential buyers, is whether or not to use a Realtor. In recent years the strategy of selling a home has undergone changes from the traditional methods most of us are familiar with – hiring a real estate professional.
The media coverage promoting FSBO has provided options to those seeking to pocket more of the selling price rather than paying the industry average of 6% to a Realtor; but are the savings actually realized?
Take into account the statistical data that indicates a seller will make up to 16% more with a sale represented by a Realtor than those going it alone. One should also consider the professional edge provided with a Realtor such as marketing experience, legal aspects pertaining to the documentation needed, and networking components unavailable to the average seller.
Realtors are licensed by state regulators and must also adhere to policy standards governed by the individual municipalities. In contrast, FSBO ventures require the individual to purchase documents and other instruments required (or needed), in order to sell a home in the framework associated with existing laws.
Another way of stressing the importance of retaining the expertise of a Realtor can be viewed by that of logical deduction. When you are sick you see a doctor, for legal problems an attorney is sought, so to ensure your home is represented professionally; invest in the professional services of a Realtor today.

Scottsdale, Arizona is a beautiful desert city located adjacent to Phoenix. Just over 245,000 people live in the city. There is no better place in America than Scottsdale. Living there you will be treated to the most beautiful sunshine to wake you each and every morning, with temperatures warm and the air crisp throughout the year. Mountains in the area are spectacular, and there is plenty of flat desert land to enjoy year round.

Aside from the beauty of the city, there are many other reasons to live in the great city of Scottsdale. Just a short drive from sunny California, there is always plenty of things to see and do in the city and nearby. Housing is yet another reason to check out the Scottsdale area. Whether you are a young couple or near retirement age, Scottsdale has so much for you. There is an assortment of fun for people of all ages, if you get tired of relaxing in the beautiful sun.

Scottsdale offers homes that are beautiful as well as affordable. There are housing in all price ranges in Scottsdale so you are sure to find something comfortable for you and your needs. Despite recent declines in home sales, there is no shortage of sales in Scottsdale, all with the best prices you have seen. If you are interested in living in the Scottsdale area, give me a call today and see how I can help you live in one of the best cities in the U.S. today.