Top 10 Things You Should Know About Short Sales
Deb NicholsREALTOR®, GRI, ABR, CSSN
Cell Phone: 602.769.9217
Toll free: 888.263.0093
Deb earned her Real Estate license in 2004, has an amazing attention to details in a transaction. Deb is a strong believer in education, and holds a GRI designation.
Roland ClevelandREALTOR®, CRS, ABR, CSSN
Cell Phone: 602.788.0708
Toll free: 800.944.3760
Roland has been a full time Realtor for nearly four years, and his positive and upbeat attitude make the entire buying and selling process a stress free experience.
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- Pros & Cons To Purchasing Short Sale Help And Bank-Owned ( REO ) Properties In Arizona Short Sale
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By Ron Cuttler By now you have probably heard and read about the distressed real estate market down here in Arizona Short Sale. As a result of the mortgage meltdown of 2005-06 and rampant speculation that caused the meteoric rise in housing values, it was only a matter of when would the housing market correct and return to some semblance of normality. It happened rather suddenly during 2006 and had been in a downward spiral ever since. As a result of this housing value correction, there is presently an abundance of opportunities to purchase distressed and devalued real estate assets near the bottom of the market. BUT BEWARE!!!! All is not as it appears….. Before we get into it, let’s discuss what is a short-sale vs. bank-owned property. Short Sale Help – A Short Sale Help is a property in which the owner is delinquent in paying their mortgage payments. It has not yet been foreclosed on by the bank, but it may be IN THE PROCESS of being foreclosed on. In this situation, the owner, many times through an agent (their real estate agent) will negotiate a stay of execution on the foreclosure and allow the owner to attempt to sell the property for a price that is typically BELOW the total mortgage amount on the property. The bank is basically agreeing to take a loss on their loan amount in the hopes of avoiding a foreclosure proceeding and having to take physical ownership of the property. BANK-OWNED OR REO (real estate owned) – In this case, the bank has gone through the complete foreclosure process and actually taken title to the property and evicted the previous owner in order to sell the property. So now that you have a clearer understanding on what these are, Here are the pros and cons to purchasing Short Sale Helps and bank-owned (REO) properties in Phoenix. This is what you need to know to decide whether this type of property purchase is for you. PROS There is one big pro – you are typically going to get a property below even current market value. Could be up to 10+% below current market value so there is the potential to get a great deal. Unfortunately, in this world you never get something for nothing. There are drawbacks for this ‘smoking’ deal CONS Short Sale Help (1) While you are still dealing with the delinquent property owner, the contract will have to be approved and signed off on by the bank taking the loss. In some cases, the bank does not even know that a Short Sale Help is being attempted until they receive an offer. This means that the wait time when submitting an offer on a Short Sale Help could stretch from days to weeks to even MONTHS to get a reply. Not only that, but until the bank has accepted/counter the offer, the listing agent will leave the home showing as ACTIVE on the market and in the MLS soliciting other offers and will submit all received offers to the bank for approval. The bank can only pick on, of course. So you could be waiting for months and then get turned down and hear that the bank accepted an offer submitted weeks or months after your offer. This can be very frustrating, to say the least! (2) Because of how the bank processes offers and the aggressive pricing of these properties, it is not uncommon for well-priced Short Sale Helps to sell for the full list price OR MORE due to a bidding war between suitors. (3) Banks want to avoid liability and will demand that the buyer submit offers with an AS-IS addendum basically stating that the buyer assumes all risk associated with the condition of the property from the time of the offer acceptance. Buyers will have the right to inspect the property, but if they miss something, the buyer – not seller – is responsible. This is one of the reasons these properties are discounted – to factor in the buyer’s risk. REOs (1) AS-IS addendum. Same as above but even scarier. Once the bank has taken over, many times they shut off the utilities to reduce their costs. This makes it much harder to inspect the property properly – HVAC, electrical, plumbing systems. (2) Remember, in this scenario, the bank has forcefully taken ownership and possession of the home before attempting to sell it. This means that the defaulting party was probably very upset prior to leaving the home. It is becoming more common to hear stories of how angry homeowners damaged/destroyed property in the home, removed appliances, plumbing fixtures, cabinets, light fixtures/ceiling fans and/or other home fixtures. I have even seen property with significant water damage, drywall damage and heard of stories of people throwing cement into the drains to cause future owners headaches. It is VERY IMPORTANT TO HAVE THROUGH INSPECTIONS OF THESE TYPES OF HOMES. (3) Banks can take long periods of time to respond to offers, although response times are typically quicker than on Short Sale Helps because the bank has already done the legwork up front to determine value and what they would be willing to accept. As a result of these issues, Bank Owned and Short Sale Helps should only be considered by buyers that: (1) Aren’t as concerned about finding the ‘one’ perfect home and are not the type of people to get attached to a home they absolutely have to have. (2) Prepared to take on the risks associated with buying distressed properties for the reward of getting a below-market-value property (3) prepared to get their hands dirty in making repairs and organizing the cleaning and trades to come in and refurbish damaged properties (4) Are not concerned with long waits in getting replies from banks on properties they have submitted offers on. THESE TYPES OF PROPERTIES ARE BEST SUITED FOR INVESTORS BUYING FOR VALUE RATHER THAN HOMEOWNERS BUYING FOR THEIR OWN USE. An investor can form the strategy of putting in multiple offers on properties, not really caring which one(s) are accepted so long as they are getting that property for a great value in line with their investment objectives. Once they have an accepted contract, they can rescind their other open offers. SO HOW DO I DETERMINE WHETHER A LISTING I AM LOOKING AT IS A Short Sale Help OR BANK OWNED?!? Good Question. Here’s the short answer. Work with a professional and knowledgeable local-area Realtor (Hey! That’s me!). Why? In most cases, Listings do not openly disclose to the general public whether a property is distressed or not. A Listing agent must make this disclosure to other agents and specifically, Buyer’s agents as it materially affects the buyer’s decision to purchase the property and for how much. Your representative can very quickly inform you whether a property you are interested in is distressed or not and through a couple of phone calls can find out the status of the home (whether there are already submitted offers on the property awaiting acceptance). ARE DISTRESSED PROPERTIES COMMON IN SOME AREAS MORE THAN OTHERS?!? Absolutely. Some areas have been harder hit in this latest housing crisis. The hardest hit areas, in general, are father away from the city core where many new homes were purchased by speculators. With the speculators now in hot water and the cost of gas going through the roof, the outer rim areas are not as attractive as they used to be. Some areas like Surprise, Queen Creek, Anthem, Maricopa and Buckeye have a disproportionately high number of distressed properties to total listings – in some areas more than 50%. That is why some areas are seeing sharper drops in values than others. Keep this in mind when considering outer, fringe parts of the Valley. About the Author: Ron Cuttler is a Buyer’s Agent in Metro Phoenix with Prudential Arizona Short Sale Properties and specializes in assisting Canadians purchase real estate in Arizona Short Sale. http://www.CanadiansBuyArizona Short Sale.com for more information Source: www.isnare.com Permanent Link: http://www.isnare.com/?aid=344285&ca=Real+Estate Continue reading
By Reed Lattin Do you owe more than what your home is worth? Are you behind on payments and feel that you can’t afford your home anymore? Do you think that you wouldn’t be able to pay a Realtor to sell your home due to not having enough equity? These are all symptoms of being “upside down” in your home. In simple terms, your loan amount is higher than the current market value of your home. You may want to consider negotiating an Arizona Short Sale Short Sale Help. So what can be done with a situation like this in Phoenix or Arizona Short Sale? A Short Sale Help might be the best solution for your needs. Many people have never heard of the term “Arizona Short Sale Short Sale Help” or “Phoenix Short Sale Help”. A Short Sale Help in Arizona Short Sale is when your mortgage company agrees to take a less amount owed on your home in an effort to sell the home before having to foreclose. Most people who are “upside down” or owe more than their home is worth are left with only 2 options when they can’t afford the payment anymore. The first is foreclosure; obviously no one wants a foreclosure. Believe it or not, that bank doesn’t either. The repercussions of a foreclosure for both the homeowner and bank can be devastating. The homeowner loses a home and destroys his credit. The bank loses thousands in court costs and foreclosure expenses. The second option is working an Arizona Short Sale Short Sale Help. The advantages of doing an Arizona Short Sale Short Sale Help or Phoenix Short Sale Help is coming up with a win-win solution for all parties. For example, when homeowners complete a Short Sale Help in Arizona Short Sale, they have effectively stopped a foreclosure from taking place. And they have significantly lessened the damage to their credit. As far as the bank is concerned, an Arizona Short Sale Short Sale Help has prevented them from repossessing a home. Repossessing a home or foreclosing on a home can cost banks tens of thousands of dollars. Furthermore, banks are in the business of lending money, not owning homes. So how does a homeowner qualify for doing an Arizona Short Sale Short Sale Help or Phoenix Short Sale Help? This answer will vary greatly depending on the mortgage company at hand. Every bank has different policies and guidelines when negotiating Arizona Short Sale Short Sale Helps and Phoenix Short Sale Helps. For example, some banks will require the homeowner to be 3 months behind before they will even consider allowing an Arizona Short Sale Short Sale Help. Yet, other banks will allow Phoenix Short Sale Helps even if the homeowner is current with mortgage payments. Generally speaking, to do an Arizona Short Sale Short Sale Help, banks will require the proof of financial hardship. This can include loss of job, divorce, overwhelming medical bills, and other various financial stressors. Furthermore, the bank will require that the home be listed with a licensed real estate agent. This is usually done to verify the value of the home. Homeowners are typically not allowed to try and negotiate and/or sell the homes themselves when doing an Arizona Short Sale Short Sale Help or Phoenix Short Sale Help. In conclusion, if you feel that you can no longer afford your home, and you owe more than what it’s worth, consult with a licensed real estate agent or attorney regarding an AZ Short Sale Help. About the Author: Reed Lattin is real estate investor in Phoenix, AZ And owner of AllHomesAZ.com which buys all homes AllHomesAZ.com-member of the Better Business Bureau Get Short Sale Help help at www.allhomesaz.com/Arizona Short Sale Short Sale Help help Contact Reed Lattin directly at 480-227-5214 Source: www.isnare.com Permanent Link: http://www.isnare.com/?aid=332031&ca=Real+Estate Continue reading
By Colleen Langenfeld It’s tempting when parenting a child with behavioral Short Sale Problems to react rather than respond. In the heat of the moment, our child pushes all our hot buttons and instead of exhibiting self-control and grace, we verbally lash out and make things worse. Honestly, this is an example of short term thinking – or short term parenting. Here’s why. In those emotional situations, all we want as mom or dad is to make the pain of the moment go away, We want our child to listen to us, to obey us and to be happy in doing so. All of that is understandable, and is also short-term thinking. And the reality of this parenting moment is confronting us with a very different picture. One way to avoid repeating this painful scenario is by establishing long term thinking within your parenting road map. (You do have a parenting road map, right?) == Long-term Parenting Strategies * Start with a plan. What kind of family do you want? What kind of homelife do you crave? I’m not talking things or stuff here. I’m talking about qualities in your family life such as a calm environment, a respectful demeanor, lively play, or connected relationships. Once you start with a family road map you can work backwards to discover the details you need to focus on each day (like specific behavior modification strategies) to make your homelife take shape. * Use Specific Strategies. If your child is talking back to you and your long term parenting plan has revealed that you want your child to be a respectful person, then instead of reacting in the moment, you will be encouraged to come up with a plan to help your child learn to be respectful. Eliminating disrespectful influences, such as specific TV programs and unacceptable music choices, is one specific behavior modification strategy. Giving a prize out at the end of a week or month when a specified number of random acts of kindness were completed by your child is another excellent behavior strategy. There’s a tangible benefit in having these strategies already thought out and in place. In the heat of the moment, you can be calm when you remind your child that back talking leads to a loss of (fill in the blank). And it will be easier to stand your ground and be firm, since you know your efforts are working towards your parenting goals. Remember, if your child is already exhibiting behavior Short Sale Problems, you are going to have to re-train and that will take consistent time and effort. The bottom line here is that we humans are not born knowing how to behave. That’s one reason we need parents! Behavior modification strategies are simply a tool we can use as we guide our kids through their growing up years. As moms and dads we have a powerful influence that we need to use wisely and consistently. Our kids have a responsibility to listen and learn from us. Together we can help our kids arrive at adulthood ready to fulfill their potential. About the Author: Colleen Langenfeld has been parenting for over 27 years and helps other moms enjoy mothering more at http://www.paintedgold.com . Visit her website and find out even more about behavior modification strategies today. Source: www.isnare.com Permanent Link: http://www.isnare.com/?aid=383503&ca=Parenting Continue reading
By Reed Lattin Arizona Short Sale Short Sale Help is basically a process where the lender and the borrower enter into an agreement that intends to make the best out of an unfavorable situation. And the situation being described here is none other than an economic recession or slump. When the economy is down, people who mortgaged their homes will be less able to pay for their debts. With Arizona Short Sale Short Sale Help, borrowers like you can have a better chance to turn around and avoid foreclosure. For instance, if you qualify for a Short Sale Help Phoenix, your bank or lender agrees to take payment that is much lower than the amount you owe them. In short, an Arizona Short Sale Short Sale Help is a better way to deal with your mortgage compared to getting your property foreclosed. Nevertheless, many people are still not aware that AZ Short Sale Help does exist. Worse, not many realtors are knowledgeable about how an Arizona Short Sale Short Sale Help is processed. Therefore, many people are not taking advantage of the many benefits that an Arizona Short Sale Short Sale Help can offer lenders, borrowers and, believe it or not, even buyers of properties. For people who are into buying and selling real estate, AZ Short Sale Help is a good way to drum up business even during a financial crisis. It is important to note though that Arizona Short Sale Short Sale Help is not a favor from banks or lenders. It is not something that they do out of charity for defaulting borrowers. A statewide Arizona Short Sale Short Sale Help or a more focused Short Sale Help Phoenix is actually part of the standard business procedures that banks often do. It is a way for lenders to cut their losses. Instead of retaining non-cash assets in their books, banks and other mortgage lenders would rather have cash. So, in a Short Sale Help Phoenix, borrowers like you do not have to feel indebted to the lender, whether in cash or goodwill. Arizona Short Sale Short Sale Help can help you make things right at a time when financial failures and disappointments are rampant. Arizona Short Sale Short Sale Help, also called AZ Short Sale Help, comes in many forms. And not all of them end up in total cancellation of debt. There are cases when the borrower still has to pay the remaining balance between the amount owed and the proceeds from the Short Sale Help Phoenix. So, make sure to clear things up with your bank’s loan officer. It feels really bad when people are losing their homes due to foreclosure. Losing ownership to your home can ruin your very sense of dignity. Fortunately, Arizona Short Sale Short Sale Help can protect you from embarrassment. It is true that an AZ Short Sale Help will also result in losing your home. Nevertheless, it is so much better than having to face foreclosure. An Arizona Short Sale Short Sale Help sets you free from your mortgage debts at a lower cost. When you pass for a Short Sale Help Phoenix or a statewide Arizona Short Sale Short Sale Help, you definitely avoid bad credit rating. Overall, AZ Short Sale Help means you can have a better control of your finances even when the economy is on a downward trend and your resources are tight. About the Author: Reed Lattin is a Phoenix, Arizona Short Sale Short Sale Help expert who specializes in helping homeowners. If you owe more than your home is worth and need to sell, contact Reed at 602-762-1270 or visit Reed’s Arizona Short Sale Short Sale Help webpage Source: www.isnare.com Permanent Link: http://www.isnare.com/?aid=343464&ca=Finances Continue reading