Solving Your Mortgage Crisis Just Got Easier – Arizona Short Sale Info

Arizona Short Sale Information

5 Steps for a Successful Arizona Short Sale: 

Lenders and the federal government, prompted by the sheer volume of loan modification and short sale requests, have overhauled their systems and programs, making the foreclosure avoidance process much easier than in the past.

If you are considering short selling your home to avoid the financial and emotional fallout of foreclosure, you should be aware of the five steps you should take to increase your chances of a successful Arizona Short Sale transaction.

First, do you qualify for an Arizona Short Sale?

You must:

  1. Have a verifiable hardship, like unemployment, medical bills, or relocation
  2. Must have a monthly income shortfall
  3. Be insolvent (you have no cash or assets that can be sold to pay down the mortgage), or headed towards insolvency

If you meet these qualifications, follow these five steps to a successful Arizona short sale:

  1. Contact me so we can identify your servicer, fill out an Arizona short sale packet for the lender, and assemble all the required information needed to list your home for sale
  2. Gather financial information (i.e., bank statements, pay stubs) from at least the last three months
  3. Keep your house in show ready condition for showings, and make as many repairs as necessary you can afford
  4. Expect the lender, junior lien holders, and private insurance companies to request more paperwork, and try to gather requested information quickly to ensure transaction efficiency
  5. Set realistic expectations and work with me, the lender, and the buyer to the satisfaction and benefit of all parties involved

For more information about how the Arizona short sale process works, or about any other foreclosure alternatives you may qualify for, call me today at 480-270-5201 or contact me here.  I can help you alleviate the burden the threat of foreclosure brings, and we can develop a strategy to help you breathe a little easier.

For more online information about short sales, please visit our Arizona Short Sale Information Center.

IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

Event for Chase Struggling Phoenix Homeowners, Feb. 3-7

Phoenix Homeowners Assistance Event, February 3 – 7.

Phoenix homeowners
Chase is holding an event for struggling Phoenix Homeowners. If you are considering doing a loan modification or currently working on one, or simply struggling with your payments and your currently have a home loan with Chase you may want to attend this Phoenix event. You can take the Chase loan modification eligibility assessment here.

Did you know Chase offers cash incentives to struggling Phoenix homeowners?

In many instances, it may be time to consider a short sale, especially if you believe that you will continue to have trouble paying your mortgage even after a loan modification. Chase is offering cash incentives to qualified homeowners that facilitate and close on a short sale.  If you are considering a short sale and you want more details on the cash incentive and/or eligibility programs, contact us ASAP for a free evaluation by a Certified Distressed Property Expert (CDPE).

Details of the Chase Phoenix Homeowners Assistance Event;

Location:
Wyndham Phoenix
50 East Adams Street
Phoenix, AZ 85004
Monday-Thursday: 8 a.m.-12 a.m.
Friday: 8 a.m.-10 p.m.
Saturday: 8 a.m.-5 p.m.
Click here for more details

Phoenix Homeowners considering short sales have 3 important things to understand…

1.) as a Phoenix homeowner you do have options

2.) time is not on your side

3.) contact an experienced Certified Distressed Property Expert (CDPE) to facilitate a short sale.

*One of the biggest obstacles when facilitating a short sale is Phoenix homeowners contact us too late to save the property from foreclosure.

What To Expect After Listing Your AZ Short Sale

AZ short saleGearing up for your AZ short sale transaction can include quite the waiting game.

Assuming you have already completed the steps outlined in our previous post in this Listing Your AZ Short Sale Series you should now be ready for your Realtor to submit your short sale package to the bank(s). Some banks will not accept any documents from your short sale package until you have a fully executed offer and others will accept the initial package upfront and accept an offer on the property after the fact.

It can not be stressed enough that when listing your AZ short sale each bank is different, however, waiting times for your file to be assigned to a negotiator once the complete package is submitted ranges from 30 to 90 days on average.

It is helpful to have a Realtor call in for updates on your AZ short sale progress on a regular basis.

Many Realtors work in conjunction with a negotiator as well that will call in several times a week to get updates. It is important that your Realtor does this or has the manpower/team/negotiator in place to do this

Getting to a ‘bank approved’ price on your AZ short sale will require patience.

Once a negotiator is assigned to your account the bank will order an appraisal or get a Brokers Price Opinion (BPO) to help determine what the home is “worth” in the current real estate market.  Then they will supply to you in writing either an acceptance of the current offer with a demand letter or with a counter identifying the bank approved price that they are willing to accept for the AZ short sale.

Closing on your AZ short sale will most likely take place X days after bank acceptance and varies by Buyer

A Short Sale Addendum will be included with the Buyers offer and states when the closing date will be or it can be X days after the bank acceptance.  The bank may also state a closing date with their acceptance notice. There will be an inspection period unless otherwise waived just like normal transactions.  The bank and the Buyers are pretty much negotiating at this point and banks rarely if ever negotiate any repairs in an AZ short sale.

Tips for Listing Your AZ Short Sale

Prior to listing your AZ short sale, know your options…

Listing your AZ short saleAssuming that you already consulted a tax attorney and real estate and/or bankruptcy attorney to consider all your options and understand all your consequences to listing your home as a short sale and you decide that a short sale makes the most sense for you, below are the three steps to take next…

Once your ready to move forward with listing your AZ short sale, don’t wait until the last minute.

Many times, are instructed during a loan modification to suspend payments on their mortgage.  If this is your scenario a trustee sale date is probably forthcoming on your home so don’t delay in moving forward with the short sale process. Once a short sale is facilitated, in most cases the trustee sale date can be postponed. However, if there is not enough time to list your home and secure an offer the trustee sale date may come and go while you are attempting facilitate your short sale.

Contact an experienced Realtor that has short sale experience when listing your AZ short sale

When it comes to short sales not all Realtors are alike. Certified Distressed Property Experts (CDPE) is a designation that many experienced short sale agents share. This part should go without saying. If you need assistance with taxes you contact a Certified Public Accountant (CPA). If you need assistance with tax legal issues you contact a tax attorney. If you assistance with real estate legal issues you contact a real estate attorney and if you need help with listing your AZ short sale you contact a local Certified Distressed Property Expert.  In addition to short sale experience your Realtor should be knowledgeable within your area, accountable and have an extensive online marketing strategy.

Start putting together a short sale package prior to listing your AZ short sale

When listing your AZ short sale you will need to put together a short sale package for your Realtor to submit to your bank for consideration. The short sale package typically consists of  the following;

  1. Hardship letter
  2. Last two paystubs
  3. Last two tax returns
  4. Last two bank statements from every account
  5. Third party authorization letter
  6. Listing agreement
  7. Contract from buyer

Each bank is different and sometimes they will only allow an individual versus a trust or an LLC to purchase the property.  There may be additional forms to complete depending on the banks requirements which your Realtor will guide you. Item 6 and 7 above illustrate why you need to enlist a Realtor ASAP in order to proceed with listing your AZ short sale.

Tips for Phoenix Homeowners Wanting to Short Sale

Phoenix Short Sale Home Tips--Avoid Foreclosure• Do not wait until foreclosure is imminent to initiate a short sale.
 
• The seller’s agent bears the brunt of responsibility for making sure the sale is completed. When choosing an agent, ask for references from previous short-sale clients and other proof of expertise, such as Certified Distressed Property Expert certification.
 
• Be prepared to prove financial hardship. Lenders usually require the two most recent tax returns, bank statements, loan statements, pay stubs or other proof of income, along with a hardship letter explaining your circumstances, a detailed description of the home’s current condition, closing documents from the home purchase and authorization for your representative to negotiate with the lender.
 
• Contact the primary mortgage lender for instructions on submitting a short-sale application. Be sure to include every document the lender requires.
 
• The seller or representative should call the lender every day until a short-sale negotiator is assigned, and then call the negotiator every day until he or she orders an appraisal or broker price opinion of the home’s value.
 
• With an appraisal and comparable buyer’s offer in hand, negotiate with the lender for approval.

•Consult with a real estate attorney and tax attorney so you know completely the possible consequences of selling your home as a short sale.