Are you interested in searching for short sale property listings in Phoenix? Or, are you a homeowner interested in pursuing a short sale on your own home? This article will provide you with information about finding short sale listings, and listing your home for a short sale. It also includes some tips that will help you locate the right site and the right agent. Whether you’re a first time home buyer, real estate investor or homeowner, the following information will be beneficial to you.
Short sales are becoming more prevalent in the metro Phoenix market largely as a result of dwindling REO opportunities. Demand has dramatically increased for lender owned properties, which has pushed up pricing. As a result, investors and other REO buyers are setting their sights on short sales. According to the Cromford Report, as of 7/14/2009, there were 7,971 short sales under contract in Greater Phoenix awaiting closure and/or approval by the lender. The Cromford Report also notes that the listing success rate has jumped from 16% in January to 44% today. These extraordinary numbers indicate that more homeowners are pursuing short sales, and that lenders are approving them ‘ eventually.
What is a short sale? Basically, a short sale is a sale of real estate in which the proceeds are less than the outstanding mortgage balance. The bank or mortgage lender will agree to a short sale due to the mortgagor experiencing economic hardship. Short sales are negotiated between the homeowner/their agent and the bank’s loss mitigation or workout department.
Short sales are a win-win for both the bank and the homeowner. Lending institutions save significant dollars by avoiding foreclosure proceedings and often save time by selling off the asset more quickly. Furthermore, homeowner participation aids in potentially maximizing value, as a sale pre-foreclosure is generally better maintained, with the owner maintaining utilities, maintaining the property’s functionality, safety and appearance, and deterring vandals.
A short sale is also less detrimental to a homeowner’s credit than a foreclosure. Through a successful short sale, the lender not only preserves asset value, but may also preserve the client relationship with the borrower, with an opportunity to establish a new relationship with a new borrower/depositor. Most foreclosed properties ‘ over 70% ‘ are not listed prior to foreclosure, which signifies lost opportunity and diminished return/value for both the lender and the homeowner.
If you are thinking about searching for short sale property listings in Phoenix, you’re in the right place!
There are thousands of websites online that offer short sale listings. Some of them are free; others aren’t. Short sale listings in the State of Arizona are public information, so you should focus on finding free short sale listings. In fact, a simple Google search using the terms ‘free short sale listings Phoenix’ should bring up enough results to keep you busy for days!
Now that you have all of these results, how do you know which site is the best? Here are a few things to keep in mind when you’re trying to find a short sale property:
First, make sure the site is really free. You should be able to search all available short sale properties without having to give up your credit card information. If a credit card is required to do a ‘free’ search, go find another site!
Next, you should test the site’s search capabilities. Some sites will provide residential short sale listings only; some will provide commercial property listings; others will provide both. What is important is that they have the listings you’re interested in and that you’re able to refine your search to narrow down the results. Being able to define your unique criteria (location, price range, size, condition, age, etc.) is crucial when there are so many listings available.
You should also take into consideration how current the listings are. Some websites do not update their listings often and you could be missing out on a lot of great opportunities to buy homes that aren’t in the search results. Websites with access local information and who update their sites regularly are a better source of information and tend to be armed with the most current short sale listings available.
Finally, you should find out who owns the website. It would be in your best interest to use a site that is run by trusted real estate broker or agent with experience buying and selling short sales. An experienced agent can help you identify the right short sale property listings in Phoenix, provide property comparables and valuations, and make sure the process of searching goes as smoothly as possible.
If you are a homeowner thinking of pursuing a short sale on your own home, be sure to use a licensed agent with ample short sale experience. Your agent will have to work hard on your behalf and follow up with the bank/lender frequently. You will benefit from an agent who is accustomed to working with the loss mitigation/work out departments and can get answers. This expertise will help keep you from waiting an eternity for your short sale to go through!
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