Posts from — October 2008

Scottsdale Short Sale – Win-Win Situation for Seller, Buyer and Bank

A real estate short sale commonly called a short sale is when a bank allows the sale of a property even though the money obtained after the sale is not enough to compensate for the outstanding loan amount. This situation arises when the borrower shows his inability to pay back the loan installment to the bank due to hardship conditions such as job layoffs, permanent injuries, financial issues, etc. In that case the bank allows the borrower to sell the property for lesser amount than the actual outstanding balance.

The reasons why banks allow short sales is mostly financial. If the borrower is not able to make the payments to the bank, then the bank may foreclose on the home. That involves lots of costs in terms of legal fees, Realtor costs, HOA dues, property taxes, etc. Further, the foreclosed homes are not properly maintained so the bank will have to spend money to get the upside down home back into shape. And finally they have to hire a real estate agent to sell off the property.

Instead the bank allows the borrower to short sell the home for the highest price as the market permits.  This short sale most of the times is a more profitable affair then a foreclosure for the bank. Similarly the borrower gets away from the situation of foreclosure which is terrible for the borrower’s credit history. A real estate short sale is a win-win situation for both the bank as well as borrower.

If you are interested in short selling a home in Scottsdale Arizona then it is advisable to find an excellent Scottsdale short sale agent. An agent having vast experience in the field  short selling homes will aggressively negotiate with the bank for your benefit.

Homeowners cannot usually speak to the loss mitigation department of a bank as they are really only interested in speaking with Realtors.  Generally the loss mitigation department of the bank is in charge of the short sales.  The Loss mitigation department is responsible for getting the best deals for the bank and getting the most out of the asset.

The process of a Scottsdale short sale begins with completing a financial package and listing the property for sale.  Once a purchase offer is received then the agent submits the offer to the loss mitigation department of the bank who will know handle the short sale. A Scottsdale short sale agent will help you negotiate the terms in your favor instead of bank.  The whole process of short sale takes about one to four months for its completion.

Behind on your mortgage?  Owe more than your house is worth?  Trying to avoid foreclosure?  A short sale may be the answer.  But what exactly is a “Short Sale”?

A short sale is when your outstanding mortgage balance is more than your property is worth and the bank agrees to accept less in order to sell the property and avoid foreclosure.    Most agents don’t like to deal with short sales because of the time involved but we have a system that although ever-changing it helps us streamline the deal and get it done!

How long does a short sale take?  We are seeing average times from contract to closing around the 70-80 day mark.  Every deal is different and every bank is different but we are constantly forming new relationships and contacts every day inside the banks in order to keep our clients on top of the mountainous piles of other homeowners files’ that exist to help expedite our deals.

It sounds like a long process but how much work is it as a seller to short sale your home?   Actually, most of the work is on our side and is done by our team at AzHomeHelp.com.  We have our clients prepare a financial package that gives us everything we need to get the deal done.  After that, the homeowner basically just keeps the property in good showing condition and we handle everything else.  This involves all negotiations with the bank which can add up to over 100 phone calls or faxes plus we do our routine agent duties such as implementing our full scale and aggressive marketing program, showing the property to prospective buyers, handling the contracts and paperwork and doing everything we can to keep the transaction moving forward.