Know About Pursuing Phoenix Short Sales As Your Next Phoenix Real Estate Purchase

Families in the Phoenix region interested in acquiring a house may have heard the term "short sale". They may also have heard good and bad things about short sales. The common perception about short sales being inexpensive is true. But, the conventional wisdom short sales can be difficult to obtain is also correct.

What exactly is a Short Sale?

A short sale is a house that is being sold for less than the loan balance. The bank agrees not to foreclose on the Phoenix homes and accepts its "surrender". The homeowner must vacate the dwelling but does not owe any of the mortgage loan balance.

For instance, the Smith family acquired their house in 2002 for $150,000 but still owe $110,000. But the house is only worth $65,000 today. The bank forgives the loan in exchange for leaving the home. Typically included in such an arrangement is a stipulation the bank will not sue for the difference.

The bank now is the owner of the home and the previous residence can move on with their lives. The property or home is then sold by the bank to a new family.

Are Short Sales Hard to find?

Absolutely no. In the Phoenix and surrounding places, short sales are not difficult to find. In fact, the state of Arizona ranks sixth in the states with the most foreclosures, according to RealtyTrac. California, Florida, Michigan, Illinois and Georgia make-up the top five. That doesn't comprise of all the properties which are near foreclosure or going through loan alterations.

Since Arizona allows both judicial as well as non-judicial foreclosures, a lot more homes may be entering short sale. Judicial short sales are done entirely through the courts. Non-judicial foreclosures only alert the court to the action. The lender invokes what is referred to as the "power of sale" clause found in the actual mortgage.

May I Purchase a Phoenix Short Sale?

Anybody can purchase a short sale in Phoenix. Buyers must go through the normal mortgage qualification process. Because the bank is the owner of the property, the buyers must be totally vetted.

Can I Purchase a Short Sale on my Own?

It will be quite possible, but not likely. Since short sales are like bank owned properties, the price is typically negotiable. Nor will the bank generally make any required repairs. The Phoenix homes are generally sold "as is". The buyer ought to know the bank will also make no warranties or guarantees on the real estate.

What Can I Do?

Contact an experienced Phoenix real estate broker. She can guide you through the process and will represent your interests.

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