How to Buy a Short Sale Property
Looking for Phoenix Foreclosure Listings? Consider Short Sales, Too!
Phoenix foreclosure listings are more sought-after than ever. It’s no surprise, since lately the news has been focusing on the great deals you can find. Why not consider a short sale instead? You can get just as good of a deal, and there are plenty to choose from these days.
A short sale happens when a seller ends up selling a property for less than the amount due on the mortgage. It is usually only offered if the seller is facing bankruptcy or foreclosure. In Phoenix, subprime mortgages have helped create a rise in short sales in recent months.
Pre-foreclosures in Phoenix are not hard to find these days. It is very possible to get an outstanding price on a home through a short sale. However, realize that purchasing a home through this method won’t be as simple as a traditional purchase.
The best strategy is to purchase the house before it is foreclosed on. The foreclosure process is expensive for banks, and they are usually more willing to take a lower price for a home and possibly sell the home at a loss to avoid the hassle and expense of a foreclosure.
Phoenix Mortgage Lenders and Short Sale Property
The seller’s mortgage company will need to be directly involved with every short sale process. This is because the bank has to give permission for the house to be sold for less than the mortgage value. The bank will decide if it is better for them to sell the home at a loss or to reclaim the house through foreclosure and sell the property outright.
For most traditional sales, you only have to negotiate with the seller. In a short sale agreement, you also have to go through the process with the current mortgage lender’s loss mitigation specialist. They will go through the property details and determine if a short sale is the best course of action for the bank. This can take up to 90 days.
You are responsible for getting a signed release form from the seller. The bank will want to make sure that the seller is willing to furnish the information that the bank will need in order to go through with the short sale. The bank does not want to do a short sale simply because a seller wants to move. There has to be evidence of financial distress.
Remember that Phoenix Short Sales Come with Some Risk
As you begin the process of going through a short sale in Phoenix, keep in mind that it is different that a regular home sale. One big difference is that in a short sale, you can be held responsible for any liens against the home after the sale is finalized. Hire a real estate attorney to make sure you do not inherit any unexpected debts with the property. A bankruptcy on the seller’s part can also impede the sale of the home.
Moving forward with a short sale also means that the home is sold exactly as it is. Necessary repairs may be negotiated into the price, but ultimately the buyer is agreeing to take the home as it is. As with any home purchase, arrange for a professional home inspector beforehand.
Even though a short sale is more of a risk than other kinds of Phoenix real estate sales, it can still save buyers thousands of dollars which is usually well worth the risk.
Still not sold on the short sale process? There are still plenty of Phoenix foreclosure listings to choose from.
