The Fine Art of Negotiating Your Phoenix Foreclosure Real Estate Transaction

Negotiating your Phoenix Foreclosure Real Estate Transaction is something mastered by experienced Realtors.

Phoenix foreclosure real estate transactionLike with anything, experience builds confidence and confidence builds excellence. Negotiating a Phoenix foreclosure real estate transaction is no different.  Most Realtors in today’s Phoenix real estate market have negotiated some foreclosure transactions if they have done business the last three years or so. That is not to say they are excellent at it.

Proper representation is important in a Phoenix foreclosure real estate transaction.

Proper representation is important in a a regular or short sale real estate transaction as well. This is just to point out that ‘proper’ representation in a Phoenix foreclosure real estate transaction is more times than not with a Realtor that has extensive experience in negotiating Phoenix foreclosure transactions.  The main difference in negotiating with the Seller of a bank owned foreclosure property is that there is a chain of command that must approve and/or sign documents and each bank follows their own line of protocol and time frames. This translates overall to deadlines being strict, terms being firm and stakes being high.

Keep your emotions out of your Phoenix foreclosure real estate transaction.

Don’t take it personal that the bank wants to charge per diem fees if you don’t close on time or that they don’t want to replace the out-dated fixtures.  A Phoenix foreclosure real estate transaction will state the homes are sold ‘as-is’ and there are other certain characteristics of a Phoenix foreclosure real estate transaction that are pretty much universal, such as;

  • Earnest money needs to be in the form of a cashiers check
  • Sellers will not provide Seller Property Disclosure Statements (SPDS)
  • Sellers will not provide insurance claim history (aka CLUE)
  • Home is being sold in as-is condition
  • Per diem charges will apply if Buyer does not close on time through no fault of Sellers
  • Buyer is required to re-key the home after closing
  • There is no chance or pre-possession

Keep your eye on the prize and employ an experienced foreclosure Realtor to represent you and the process will go smoothly and stress free. Click here to contact us directly or complete the short form below if you are looking for Buyer representation in the Phoenix-Metro area. Our foreclosure team services Phoenix Valley Wide and has several experienced and knowledgeable Realtors dedicated to helping you with your Phoenix foreclosure real estate transaction.

Phoenix Bank Owned Foreclosure Process Explained–Title/Escrow

Phoenix bank owned foreclosure escrow phase is slightly different

When your Phoenix bank owned foreclosure offer is accepted and you have a contract which all parties have signed it is time to open escrow with a title/escrow company. You typically have 24 business hours

Phoenix bank owned foreclosure escrow transaction process upon receipt of the fully executed file to do so and the banks will require (typically stated in all bank addenda during negotiations) escrow monies be in the form of a cashiers check only. A personal check and/or money order will not be accepted.

For out-of-state clients purchasing a Phoenix bank owned foreclosure it is common to deposit earnest money funds via a wire transfer, however, if that is the case you would typically wire the money when you return your signed copy of the bank addenda in order to include a copy of of the wire receipt with your file that is being turned into the bank for final signatures. Similarly, local buyers need to provide a copy of a cashiers check when returning their signed file.

Rarely will a Phoenix bank owned foreclosure accept a buyer signed file without proof of earnest money

The other option for the out-of-state buyers is to overnight their earnest money check to their Realtor after a copy is included with their file so their Realtor has it to open escrow as soon as the fully executed file is back from the Sellers.

After escrow is opened on your Phoenix bank owned foreclosure you should receive a preliminary title report within 5 calendar days and if there is a Home Owners Association (HOA) the title company should request a resale statement ASAP.  If you are paying cash for your Phoenix bank owned foreclosure it is a good idea to have your Realtor follow-up to ensure the HOA statement has been ordered on time because legally the HOA has up to 10 days to provide the necessary information and many times closings may be prolonged due to a delay in receiving the HOA information.

If you use the Sellers (banks) choice of title company during the Phoenix bank owned foreclosure negotiation process the Sellers will pay the buyers standard title owners policy

The standard owners policy which is normally a buyers expense for a 100K home is about $700-$750.

The following posts in this Bank Owned Foreclosure Process Explained series will outline scenarios regarding the inspection period.

The escrow process can seem confusing but working with an experienced Realtor will lighten the load in understanding the process of the Phoenix bank owned foreclosure.