See All Short Sale and Pre-Foreclosure Homes for Sale in Scottsdale (AS AVAILABLE)
Short Sale, Bank REO’s and Pre-Foreclosure Homes for Sale in Scottsdale still present an opportunity to buy homes at a good value. The total number of homes available as short sales, bank REO’s and Pre-Foreclosures has dropped significantly when compared to the years 2008 through 2012 but homeowners are not immune to the slow economy and unemployment realities or the fact that they owe more on their home than it is worth and homes are still being given up or lost. The Banks and Lenders have become more aware of market values, so often the prices are not as big a bargain as they were during the years of 2008-2012 but, depending on the home’s overall condition, bargains may still be had.
If you are considering a Short Sale for a property you own, you may find the following information useful:
Short Sale Definition: A short sale in real estate occurs when you want to sell your home but you owe more on your home than your home is worth.
How to Do A Short Sale
1. Call and meet with a real estate professional and get an estimate on the value of your home.
2. Figure out the total amount owed on your home which would be a combination of one or more loans (1st and 2nd perhaps) on your home.
3. Talk to your tax professional as to the liabilities and or ramifications of what a short sale would mean to you. In some states, including Arizona, the deficiency on the home is being forgiven. The deficiency is the difference between the selling price and what is actually owed on the home. It is considered income for tax purposes (almost as a gift of money, even though you don’t actually receive any) and needs to be forgiven so that you don’t owe any tax on it.
4. Should you decide to move ahead you will want to make sure that the agent you choose is knowledgeable and experienced or has a team at work that knows how to navigate the short sale process. Not all agents do short sales nor are they experienced at doing them.
5. List your home for sale.
6. Once a buyer comes with an acceptable offer on your home and you sign the contract, the short sale process will then start.
7. Your Realtor will then submit the contract to the lender. Most experienced short sale agents will communicate a list of wants from the bank. In other words, there will be a list of things that your lender will want submitted to them along with the contract, i.e. a hardship letter, 2 years of tax returns, pay stubs, etc. Your real estate professional should walk you through the process every step of the way.
8. The short sale process is anything but short and simple. This is why you will want a short sale team of experts assisting you through the process. After several months your lender will contact your agent to schedule a BPO (Broker Price Opinion) which is another term for an appraisal. Once the lender receives the appraisal there will be another waiting period and then, typically, an acceptance to your buyer’s offer or, perhaps, a bank counter offer. Keep in mind that by this time you may be quite a bit behind in your mortgage payments. Try not to stress out about it because, more often than not, as you get deeper into the short sale process, the lender will agree to push the foreclosure sale back in an effort to push through a successful short sale. Remember, banks do not want to own homes.
9. Once a meeting of the minds between the buyer and your lender are met in regards to price, the true escrow and sale of your home will start. This is the time for buyer inspections and HOA documents (if applicable) to be requested. At this point, with a cash buyer, you may be 10-30 days out from closing. With a finance buyer it will be 30-45 days typically.
10. Again, this process will require some patience but should ultimately result in a positive outcome when using the right real estate team.
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