Blogs → Jason's Blog → Embracing the Short Sale

Posted Jul 01, 2009 8:07 am (3 years ago)

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Looking for the perfect home, and hoping to get it for a great value? Consider a short sale.

Short sales, previously a little-known term to anyone outside of the real estate profession, have become the latest big trend in the buying and selling of homes. Although they are far more complicated than the traditional purchase method, they allow buyers to catch a great deal on a previously occupied home, and can save the seller from the negative effects of a foreclosure.

The short sale process begins when a current home owner realizes that he or she will not be able to keep up with their mortgage payments, or maybe they are already several months behind. It may also be that the home value itself has declined rapidly, and now the owner owes the lender more than the home is actually worth. In any of these cases, the owner may consider a short sale. The owner contacts the lender for approval, and begins the paperwork necessary to proceeding.

In a short sale, the lender agrees to accept less than the actual amount owed on a home as payment. This often saves the lender thousands of dollars, and a lot of time and effort, compared to a home foreclosure. Short sales also allow the current home owner to get out of their mortgage with less damage done to their credit than if they had entered into a foreclosure.

From a new home buyer's perspective, a short sale can be an opportunity to buy a home for under the actual market value, but only if they are patient and willing to wait. A short sale can take three months, or longer, to complete. Finding a professional short sale agent is the first step to purchasing a short sale. Buying short sales can be a complicated process, and it's useful to have an experienced agent by your side.

Approximately 25% of all homes bought since the beginning of 2009 have been short sales. Some agents even report that half, if not more, of their recent sales have been short sales. This is thanks, in part, to government incentives for lenders to accept short sales; equaling over $1,000 in funds for every short sale accepted. Short sales, especially in Arizona, are going to continue to rise, and they are getting easier.

So, what does all this mean for you? As a potential home owner interested in Arizona real estate, you are in a great position. Whether you are looking to become a first time home owner or a current home owner looking to move, the conditions for purchasing a home has never been more favorable. There are thousands of Arizona homes for sale, hundreds in the Phoenix area, and many of those are short sales. With a qualified Phoenix realtor leading the way, there is no reason for current or future home owners to not consider taking advantage of this opportunity.