Short Sale Specialists in Scottsdale – Plan and Prepare for Success !

If you’re the one out of every 3 Arizona Homeowners who currently owe more on their home than it is worth and you can’t afford to make your payments anymore then a Short Sale may be the answer for to get out of your mortgage, avoid foreclosure, and still be able to buy a new Arizona home in just 24 months.

Whether you’re a buyer looking to take advantage of the savings a short sale can offer or a seller looking to get out of your home that you owe more than it is worth, we at Capital Realty are here to help. We are a Scottsdale real estate brokerage firm that specializes in working with short sale properties any getting transactions closed for both Buyers and Sellers alike. .

As you begin to do your research on Short Sale properties in Scottsdale, it is vital that you find a short sale Realtor that brings to the table a wealth of knowledge about this unique, but increasingly popular, way of selling or buying a home.

“It is amazing how many realtors and sellers are listing properties just based on what is owed on the property, or what they think will get the quickest offer and at prices that are unrealistic and the bank will never approve.  More times than not, these are the homes that end up in foreclosure and never see during the short sale process. “

What is a Short Sale?

If you are not familiar with short sales, a Short Sale is when a seller owes more on a property than the property is worth. The owner will then attempt a Short Sale, where they will list the property at or near today’s market value in an attempt to have the bank forgive the debt that is owed. To read more about Short Sales and the difference between a short Sale and a foreclosure read my previous post: The Difference Between a Short Sale and Foreclosure.

The Process:

If you are considering a Short Sale it is imperative to plan ahead and prepare prior to listing your home. You must have all your documents and paperwork in order and as a seller, it is critical to gather the information as quickly as possilbe to give to your realtor. 

When we take any short sale listing, here is a basic checklist of items that  you need to provide upront:

1.  Discuss the situation you are in and prove your hardship.  We need to know this when we communicate with their lender as it is the first thing they want to know.  We will also have the seller write a hardship letter in the first week of us taking the listing. The hardship letter will explain to the bank how and what happened that you can no longer afford your current home or why you have to move.

2. Have a title company do a mortgage and judgement search on your property.  We need to know as soon as possible what other types of liens we are dealing with besides the mortgage. Our title company will prepare all this info for us. 

3. Authorization Letter – No bank will speak to any realtor without authorization.  We will have the seller sign these letters when we take the listing to give us permission to talk and work with the lender.  

4.  Order the payoff – Often times, what is owed is more than the seller thinks due to interest and penalties. Getting an accurate number is essential in this process. 

5.  Gather the info (bank statements, tax returns, W-2s, etc).  Most banks will have on their website or in their short sale info, the documents that are needed for the short sale package. When I take any listing I contact the bank and get a detailed list of everything required by your specific lender. 

6.  Marketing – make sure in the MLS that is clearly communicated to the buyers agents and buyers that their agreement is subject to short sale approval.   That way there is no confusion later on and you are disclosing everything upfront. It is important to try to get the best buyer for the deal, and one who knows and understands the Short Sale process,  one who is flexible and that can close once approval is granted. 

There are other items to plan and prepare for with a Short Sale but at least with this preliminary list, one can increase the chances of success right from the very beginning !

Check out this post on recent Short Sale statistics.

If you are considering a short sale or would like more information on the process please feel free to contact me at 602-708-0296 or by visiting the contact page.