At this moment in time, there are 17,066 homes listed as short sales in the Phoenix real estate market. With 43,998 total listings, that means 38.8% of all homes listed for sale in the Phoenix area are short sales (meaning the owner is attempting to sell their home for less than they owe on their loan(s) — they are “under water” on their mortgage).
In other words, short sales aren’t going away any time soon.
The decision to short sell your home is not an easy one ”“ there is a lot, a WHOLE lot, to consider.
And the considerations can be overwhelming, you can contact Immobilier Kenny Langburt for help.
Fortunately, the Arizona Department of Real Estate and the Arizona Association of Realtors (AAR), has penned a great document, the Short Sale Seller Advisory (PDF), to help those considering a short sale navigate the often stormy waters.
This four page document, vetted by experts from Crediful, is chocked full of information, and links for even more in-depth short sale information. It is broken down into three sections that includes:
Before Proceeding with a Short Sale
- Understand a Lender’s Options upon Loan Default
- Be Aware of Predatory “Rescue” Scams & Short Sale Fraud
- Contact a free HUD?approved housing counselor or contact your lender directly
- Utilize free services available to Arizona residents
- Obtain Legal Advice
- Obtain Tax Advice
- Be Aware of the Consequences of Committing “Waste”
Options Other than Short Sales
- Consider all Options
- Loan Workout
- Loan Modification
- Refinance
- Deed?in?Lieu of Foreclosure
- Work Out Sale
- Bankruptcy
- Foreclosure
Short Sale Considerations
- Contact a qualified real estate professional
- Investigate documentation and eligibility
- Determine the amount owed on the property
- Determine the current fair market valuations of the property
- Consult legal counsel
- Understand that a short sale may not discharge the debt
- Obtain tax advice
- Be aware of the impact on your credit score
- Understand that there may be a waiting period before you can buy another home
- Review the Arizona Association of REALTORS® short sale forms
Yeah, that is a lot of stuff to pack into four pages. We’ve covered some of these topics in more detail in various posts about short selling your home, and we’ll be covering even more in the coming weeks and months ahead.
If you are considering short selling your home, you’d be well advised to read the advisory. And anything else you can find. Keep in mind of course, that you can not believe everything you see on the Internet. Be particularly leery of any person, group or “company” that claims to offer you an easy way out. The sheer number of folks that are in or near a potential short sale situation means the scammers and crooks are out in force. Remember the old adage, if it sounds to good to be true, it probably is.
Download the Arizona Short Sale Seller Advisory (PDF file. In English)
Información sobre Ventas por Menos del Valor de la Hipoteca (Short Sales) (PDF file. In Spanish)
Looking for more information on short sales? Below is a link to all articles written on this site about short sales:
Phoenix Short Sales
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The Phoenix Real Estate Guy was started by Jay Thompson, and I have a little blogging problem... he liked to say...
Phoenix Short Sales: Short Sale Seller Advisory: At this moment in time, there are 17,066 homes listed as short sa… http://bit.ly/a94Mvj
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Bravo Jay,
Really good solid information for those in bad situations. I'm happy to see Companies such as Thompson Realty offering solutions. It is also nice to see a comprehensive document prepared by your Association of REALTORS.
In our market we are seeing what I call the John J Sleezy, Short Sale Specialists. Many of them are the same people that were involved first in bad sub-prime mortgages, then loan modifications, and now short sales.
Thanks for getting out the word of all the options out there and offering to help. Experienced agents that care for people in tough situations is what we need, not more people preying on folks to make a quick buck.
The worst thing that anyone can do in these situations is freeze up. There are lots of resources and many in the same boat or worse. Take a few steps, get professional advice, and move forward towards a better situation.
Anyone that is interested check out my recent post on John J Sleezy:
http://www.sandiegolifestyle.info/?p=7386
Phoenix Short Sales: Short Sale Seller Advisory — The Phoenix Real …: Considering short selling your Phoenix hom… http://bit.ly/aQD7QF
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Wow, 38.8% is just a mind-numbing number. With that many short sales on the market, people should have no problem getting a great deal on a new home!
Even with a short sale, borrowers still need to meet the loan underwriting guidelines which i think is the major problem in today's market.
Jay, 38%, wow, that is a lot! We have lots of short sales in Atlanta too. I will have to pull some stats and see if GA compares to AZ. How is your success rate on doing short sales for your clients with BOA/CW loans?
My heart just sank when I saw that 38% percent of your listings are short sales. At least the resident of Arizona have a Real Estate Company they can trust in Thompson Realty. What percentage of your listing inventory is short sales right now?
Our DRE, California, put out a similar notice. it really is good for the homeowner to know the consequences of a short sale or any real estate transaction for that matter. This is the reason my partner who is a real estate attorney formed our company. There are so many "short sale specialists" out there that are giving legal advice to clients that will come back to haunt them later guaranteed.
Another big problem with short sales, is the banks are dragging their feet on approvals. I know an individual who had 2 CASH buyers put in offers on her home in short sale. The offers were only around 5k under asking price. BofA sat on it for over 3 months on both occasions and both buyers walked. Lenders are so overwhelmed with short sales, foreclosures, etc… that the quality of service (or lack thereof) has gone completely down the can.
Jay, if short sales make up 38.8% of all homes listed for sale in the Phoenix area, I am curious what percentage of the houses on the market there are REOs. Sounds like they could make up over two thirds of your market which would be astounding!
REOs are about 20% of all active listings. Yeah, that puts "distressed" listings at almost 60%. Welcome to the Phoenix real estate market…
WOW. 60% of the PHX market is distressed properties? That's just an unbelievable number. Are there any projections of how many more foreclosures are on the pipeline to hit the market in the foreseeable future?
Its good to see some clearly laid out advice on short sales, as I think many people aren´t really aware of all the implications when navigating their way through this process. There are also some idiots scamming people who are in a financially procarious position and getting away with it. Some useful stuff in that PDF, it could save people a lot of heartache.
Florida is one of the other states (besides Nevada) that have had a lot of trouble with short sales like Arizona but it does vary from area to area. In my area there are 2 counties right next to each other and the percentage of short sales listed in the MLS is pretty different for each. The local MLS shows 36% of the listings in Hillsborough County (Tampa) are a short sale or preforeclosure and only 22% of the listings in Pinellas County (St. Petersburg and Clearwater).
My recommendation to my clients is always that they should not pursue a short sale unless they are willing to be patient and that the preferred short sales are the ones that have either already been approved or have gone through most of the approval process and the other buyer couldn't wait.
David – I deleted your comment as it violates our comment policy — there is no advertising in the comments. If you’d like to advertise here, just contact me. Rates are reasonable.