A Short Sale in Scottsdale, Arizona?
So you’ve read all the short sale blogs about short sales in Scottsdale, Arizona and you probably know that a short sale in Scottsdale, Arizona is simply selling the home for less than what is owed. Here’s why that’s important to you as the buyer (aka the person with the money).
- This home is trying to avoid foreclosure, it means that renting it would put you in harm’s way (of being foreclosed on too).
- This home is being sold for less than what it’s worth (so lease purchasing [at the price that is owed to the bank] isn’t a good move)
So now that we got all the renters out of the room, let’s talk about you, Mr. and Mrs. Buyer, here’s what YOU need to know about buying a short sale in Scottsdale, Arizona
- A good short sale listing agent in Scottsdale, Arizona should be able to complete the short sale in 90 to 120 days (for the worst banks) most of the time.
- Your short sale problems are directly related to the listing agent being able to do their job effectively with the bank. (If they aren’t good at their job, you might not even get a chance to buy the home).
- Your agreement is with the seller and yourself, NOT THE BANK. The bank approves the shorted amount but your contract (the legal entity) is with the seller.
- The word “Short Sale” does not mean that you are getting the deal of the century. It means someone is selling their home and if the agent priced it right and managed the BPO right, then chances are you, will pay slightly more than a foreclosure price but far less than “retail.”
- Yes you still want to inspect it, PREFERABLY after the short sale in Scottsdale, Arizona is officially approved.
- You will be required to buy title insurance if you are getting a mortgage, but if you are paying cash, the short sale bank will provide title insurance. Seriously, there’s not a subliminal suggestion here.
- Don’t expect to get repairs. The seller doesn’t have any money and the bank doesn’t care.
- Don’t expect a warranty of any kind – The seller doesn’t have any money and the bank doesn’t care.
- Don’t expect more than 3% closing costs on an FHA loan. If you are paying cash or obtaining a Convention loan you will probably get nothing towards your closing costs.
Finally, here are some short sale myths for buying a short sale in Scottsdale, Arizona
- The bank owns the home – WRONG! – The home owner owns the home until the bank takes it as the collateral used for their loan.
- Your offer has to go to the bank – WRONG! Your offer must be presented to the seller and if the seller accepts your offer, then it is forwarded to the bank.
- The bank wants to foreclose – WRONG! – They just want the most money. If the short sale listing agent in Scottsdale, Arizona hasn’t done their job correctly then the bank may consider foreclosure if they believe foreclosure will net them more money.
- The bank will see that the offer is in their best interest – WRONG! – The bank thinks getting 2008 money on the 2011 sale is not in their best interest. The bank doesn’t operate in reality and most buyers today don’t either. It’s OK, we’re all a little weird that way, but the bank will see the net offer and if all their checkboxes are checked and if they are in a good mood, and there’s no MI (Mortgage Insurance) company and their manager approves it and they have delegated authority on your offer and hopefully the offer was higher than the BPO value then they might think your offer is better.
- After the inspection you can negotiate based on findings – WRONG! – The bank has already paid their $10/hr employee for 30 days to move paper around and approve this file, so you’ll have to buy it and like or leave.
The bottom line is a Short Sale in Scottsdale, Arizona can be a lengthy process full of many twists and turns. If you are working with a full time real estate Professional, he or she will be able to guide you through this maze of activity and hopefully you will come out on the other end a happy new home owner. Please call us today at 602-620-2164 or email us at firstname.lastname@example.org if you would like assistance searching for a great short sale home in Scottsdale, Arizona.