Should I Buy A Short Sale Property in Phoenix?
So you’ve decided to buy a short sale in Phoenix Arizona and don’t know what the potential caveats are but you’re in luck as Cash Now Homes has the expertise to guide you through the acquisition of a short sale and lessen the minutiae of what is needed to accomplish your short sale purchase.
Before we continue moving forward, let’s quickly define what a short sale is and how to make the purchase a reality. As I stated in the previous article, a short sale in Phoenix happens when the value of the home is less than the value of the actual mortgage in place and the homeowner can no longer meet the mortgage payment and instead of going into foreclosure decides that a short sale is the best recourse as long as the lender agrees so now let’s roll.
So you are a savvy real estate buyer and you’ve heard about what a great investment a short sale is etc. but unfortunately, you were not told what the potential pitfalls or caveats are and that is what I am about to share with you right now so let’s keep reading.
1. Short Sales are sold “as-is” which means that the buyer is responsible for repairs of the property to include structural issues, code deficiencies etc. which can be very costly.
2. There are also varying times for closings specifically if there is more than one mortgage on the property and it can take time (weeks or even months) to get a response to your purchase offer not to mention even longer for an acceptance and the title closing which can test your patience and that is putting it lightly.
3. There is also the possibility that a mortgage lender might ask the homeowner selling the property as a short sale to agree to pay the difference of the actual sales price and the mortgage value which provides a troublesome scenario because the sale might fall through thus the deal never gets done. Egad!!
Wow George! Is there more and why are you putting such a damper on my real estate investment dreams?
Well good people of Arizona, it’s best to have all the facts or as much as you can handle so let’s continue with more potential caveats for buyer responsibilities when purchasing a short sale property in Phoenix.
1. When buying a short sale property you are responsible for paying a larger percentage of the closing costs, which can prove costly when it comes to the initial investment.
2. You as the buyer must pay for home inspections and last but not least something known as independent appraisals.
3. Let’s also talk about a buyer who already owns a home and wants to sell it before they invest and or purchase a short sale and guess what folks?
The lender might actually deny your utmost reasonable offer for that short sale property that you wanted which throws a “wrench” into your plans as it takes time to do a short sale.
So once again, how do I go about buying a short sale property and actually find a great deal in the process?
First and foremost, you will need to find an experienced and knowledgeable real estate broker to include a real estate attorney who can find out the financials for you and tell you if it is potentially good deal or a bad deal but there are always caveats involved so let’s continue reading and see what they are.
Please remember that the gold is in the financial details so it’s not wise to rush into buying a short sale property without the proper advice because short sales take time so let’s discuss that in the next paragraph as this is an important detail and the deal breaker in many potential short sales in Phoenix and beyond.
So George, please tell me how long a typical short sale deal takes?
That is an excellent question and I do have the answer for you and it is simply “just depends” as it is subject to your lender or bank and how motivated they are to get it done and that is as far as I will go on that as I cannot control their level of motivation. Although the good news is that most lenders and banks have a somewhat understandable review process so you have to do the following to streamline this process.
1. Do not send incomplete short sale packages, as that will cause unneeded delays.
2. If you give an incomplete offer you can be assured that it will be passed over or simply rejected so please pay attention to details.
3. If this happens, you go to the end of the line again as your file is closed and you have to start from scratch (hard to believe) and that good people of Arizona is a massive headache and heartache all rolled into one into one short sale fiasco.
4. Anything that your bank or lender requires for the short sale process, you need to provide and as quickly as you can especially by the qualified and experienced real estate agent that is helping you negotiate the short sale so let’s create a win-win situation and get those details in order.
5. Also, a little known fact or should I say overlooked is to make sure you provide your email address but if you are like Cash Now Homes personnel who obsessively check them daily to see what kind of progress is being made and if you need to provide new paperwork etc.
At this point in time, we will end the article here as I feel like I’ve given you the pros and cons of what to expect and provide in order to buy a short sale property in Phoenix Arizona and please be assured that I will continue to add more articles on the short sale process and its “pros and cons” as it is an important topic and area of concern for a large number of my clients and potential clients.
Please know that Cash Now Homes is here for you when you need us most as we have the specialized skill set to handle short sales and understand the complexities involved.
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