I stated in previous writings that Arizona short sales would become the new norm in home and real estate transactions… And, they did.
So much so that at one point in the market, Arizona short sales accounted for more than 70% of all real property transactions here in the Valley of the Sun. Short sales offer tremendous benefits to underwater homeowners. And, many have used this tool to get out from under a burdensome mortgage.
Short sales are a fantastic tool when used properly and executed properly by a knowledgeable short sale expert.
Recently however, I have noticed that the percentage of short sale transactions occuring in the property market has dropped. I would estimate that it has come down from 70% to around 50% in the past year or so.
It goes without saying that this is still a very high percentage of “distressed” transactions, but what has happened to cause the drop? Has the credit market suddenly opened up? Doubtful…
It seems that the major banks are still sitting on a great deal of foreclosed inventory that they are simply withholding from the market currently… But, there is talk of another wave of properties being brought to market through the foreclosure process as banks decide to act on delinquent homeowners. What will this do to the market? It could put more downward pressure on home prices. And, if it does… We could be looking at a double dip recession.
As scary as that is, you should get the facts on Arizona short sales so that you can move quickly in the event of a further loss of equity due to more foreclosures hitting the market. The last thing you want is to have no options if you decide “enough is enough” and want to get out of the underwater mortgage.
Give Arizona short sale tips a call for more information and a FREE consultation. Find out quickly if a short sale is right for you today.
A great many people in today’s marketplace facing foreclosure or an eminent short sale find themselves in a position of having two loans. It could be 100% financing where the down payment and the loan amount are mortgaged, or it could be a situation where there is one purchase money loan, but then there is a home equity line of credit in addition to that.
Either way the result is two loans and in the case of a short sale, both lenders have to agree.
So let’s say one loan is with Bank of America and the second loan is with Chase. If BOA agrees to a short sale price, then Chase must also agree to the terms and because Chase is in second position on the loan, they usually have to eat the whole amount or agree to accept a small payment like 3 or 4 thousand. The second mortgage holder must agree though for the short sale process to be successfully used. This can cause a problem mind you, BUT… it does not have to in all cases. Usually, a skilled short sale professional can make arrangements with both lenders and get the deal done.
Competent short sale experts make all the difference in situations like this. Just understand that these situations, while being more involved than your standard short sale with one loan, are possible to overcome and your short sale can be done properly and successfully. As with all short sale processes and procedures, we recommend you speak also with your accountant and your attorney to ensure that you will not be liable for any loan deficiencies.
The second and possibly simpler case of having two loans is when they are both with the same lender. In a situation like this, the lender will have the ability to look at both loans simultaneously while making their decision to move ahead on a short sale. This is a much quicker scenario. And, the risk of having a disagreement among principles is mitigated. Because of this, there is an even higher likelyhood of being able to get the short sale approved and executed without issue.
For more information on short sales and what to look for in a short sale expert just follow this link:
http://www.arizonashortsaletips.com/short-sale-experts/
