Scottsdale Real Estate Blog - Short Sales

Force Fannie Mae to Act Responsibly!

As a member of the real estate group Short Sale Superstars, I have been made aware that Fannie Mae is not being realistic about the list and sale prices of their short sale properties. I was the listing agent for a Scottsdale for sale that was a short sale.  We listed at fair market value according to recent comparable listings.  We received a contract and the response from the seller's bank was that they wanted a price that never would have appraised.  There was no chance of selling it short with this bank.

There are no guarantees with short sales but it seems like Fannie Mae would rather foreclose with their unrealistic counter-offers. They are countering above BPO's (Broker Price Opinions) they are receiving. Most of the buyers I work with are not…

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Short Sales and Sellers

SHORT SALES AND SELLERS - AN EXPLANATION

Why would a seller want to do a short sale?  If they have attempted to get a loan modification (which rarely goes through), and want to hopefully be able to buy another home as soon as possible (could be as soon as two years after the short sale is closed) depending on down payment, attempting a short sale would probably be the way to go.  However, here is my disclaimer:  a seller needs to speak to their attorney and possibly a CPA to see what the best thing is for them to do.

OK, disclaimer aside, a seller does have other options.  If a seller cannot afford their current mortgage and cannot sell their property to cover the current mortgage balance along with closing costs and would not be able to rent…

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Short Sales and Buyers

I still meet buyers that don't really know what a short sale is.  A short sale listing is a property the seller is trying to sell for less than what is owed on the mortgage.  A short sale can actually take a very long time, the "short" is referring to the fact that there will be less money to the mortgage provider than what is owed, not the length of time from contract acceptance to closing.  Short sales are available in every town and every price range, including real estate in Scottsdsale.

Data suggests that only about 50% of short sale offers ever make it to closing.  Agents, buyers, and sellers don't understand why a mortgage provider would rather foreclose than sell short, especially when it seems like most closed short sales sell for higher…

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There Are Great Deals In This Market

I am seeing such great deals lately that I'm actually considering selling my own home.  When we purchased our home we thought it was big enough.  But after living in it we discovered we could have used a little more space.

We should not lose money on our home, although when figuring in the work we've done on it (remodeling bathrooms, putting in hardwood floors and some new windows), we'll be lucky to break even.  But we don't care.

The math is in our favor.  Even if we don't see good appreciation on our home (that we purchased in 2003 - just before prices started to skyrocket) we will more than make up for it with our next purchase.  In fact, I've seen foreclosed properties that are larger than our home going for less money, just because it's a…

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Scottsdale Short Sale Story From the Buyer's Side

So many buyers call me asking me for a list of foreclosure property or ask about short sales thinking they're going to get a real deal.  I try to explain to them how it works and the fact that no one is guaranteed a "deal" when purchasing one of these properties.  In fact, I've seen many foreclosed and short-sale properties where the bank won't budge on price and the prices are simply too high for the condition of the property.  On the foreclosed property I handled in Scottsdale, the mortgage holder was ready to reduce the price right when we got an offer.  That fact made the lower offer more acceptable to the bank since they were thinking of reducing it anyway.

Banks don't always understand the current Scottsdale real estate market - or maybe they…

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Scottsdale Condo Short Sale Story

I am seeing more and more short sale listings as 2008 continues on it's slow course in Scottsdale real estate sales.  These listings are competing with the many other real estate listings that are being sold by home owners that want or need to move.  In some cases short sale prices and foreclosures are now being used as comparables by appraisers.  I've been on both ends of short sales.  I had a short sale listing and have presented buyer offers to several short sale listings.

I will talk about my short sale listing that was a Scottsdale condominium for sale.  This unit was owned by an out-of-state seller that had only seen the condo once.  It was a family investment and a divorce caused the need to sell.  This condo was only a few years old.  There had…

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More Scottsdale Short Sales Coming Up on the Market

I work with a lot of buyers and even I am amazed at how many Scottsdale homes for sale are coming up that are short sales.

What is a short sale?

So many buyers have heard the term but don't know what it means.  A basic definition is that a short sale is where a bank/mortgage provider agrees to consider allowing the property to sell for less than what is currently owed on the mortgage.  These are also referred to as pre-foreclosure sales as the seller is trying to avoid foreclosure by attempting to sell their property.  I have heard of some areas such as Florida where short sales are accepted even when owners are current with their mortgage payments.  Normally, the homeowner has to prove why they can no longer afford the property and fill out a form…

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