Short Sales in Phoenix, AZ
 When considering a short sale, the
seller's mortgage company will determine if the owner is
eligible through a process of reviewing the owner's
financial status, the value of the home, the potential costs
of actually foreclosing, and the buyer's offer to purchase
the home. If the mortgage company decides to move
forward with the short sale, the mortgage company will agree
to accept less on the loan instead of foreclosing on the
home.
In order to make the determination if an owner is eligible
for a short sale, the mortgage company will:
-
Review the short sale application
that includes reviewing the owner's tax returns, bank
statements, income, etc.
-
Have the property appraised by an
independent third party.
-
Review the buyer's offer, including
any sales concessions requested by the buyer
-
Compare the cost of the short sale
versus the cost of foreclosing upon the home.
This process takes time...upwards to
two to three months. If you are considering the
purchase of a home subject to a short sale, you have to be
patient. Short sales do not happen quickly.
Lately, we have seen lenders try to
renegotiate the contract. Lenders may try to limit any
concessions that a seller is willing to give to a buyer,
raise the sales price to limit the losses incurred by the
bank, or flat out reject a contract due to a weak buyer,
risky financing, or some other condition of the contract
that they do not like.
Short sales can be lucrative and
provide a buyer with a great opportunity to buy a home in
this declining market. However, short sales do not
happen quickly.
For more information on purchasing a
short sale in Phoenix, give me a call at 480-888-1234.
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