Buying short sale process in Arizona-Avoiding short sales can cost you big

The buying short sale process in Arizona can be a bit taxing on one’s patience, but if you have patience and the right realtor to help you……man, can you get a great deal.

There are short sale listings to avoid and there are others that can go very smoothly.  The buying short sale process can be complicated.  This is where you’re realtor becomes your advocate and works to get you the best property for your money.

  1. Identify the property that you would like to make an offer on.
  2. Have your realtor check to see if there’s a trustee sale date set.  Typically, if you’re within 30 days of the trustee sale, the short sale cannot be processed in time.
  3. Have your realtor check the comps so you can do a reality check on the price.  Sometimes, listing agents list the price under market to generate a lot of interest and get a contract on the property.  They then pray that they can talk the short sale lender(s) into the lower price.
  4. Have your realtor find out how many loans are on the property.  The more loans there are, the harder the approval process.
  5. Have your realtor find out who the lenders are.  Some lenders are extremely difficult to deal with and take a very long time in coming to any kind of a decision.  Some examples of difficult lenders to get a short sale approval are Aurora, Greentree, and most credit unions.  There are cases of a smooth transaction with each of these lenders, but most realtors will agree with me.  Some other lenders are very easy to deal with.  For instance, Bank of America, Wells Fargo, and Chase.  Basically, the better the lender’s process, the easier the transaction.
  6. Have your realtor find out what the seller’s hardship reason is.  Without a hardship, the lenders are much less likely to approve the short sale.
  7. Have your realtor find out how many short sales the listing agent has done.  This can be the kiss of death for a short sale if the listing agent is inexperienced.  The short sale process is actually quite cumbersome and if the listing agent is inexperienced, there are likely to be many unnecessary delays and potentially end in a short sale denial.
  8. Make sure your realtor is willing to be the squeaky wheel.  Make sure he’s willing to get updates that he can pass along to you.  There’s nothing worse than placing an offer on the property, waiting for months, and then get a denial.  Now you’re at square 1 and looking again.
  9. Place an offer on the property and then be patient.  Remember, patience is a virtue.  Being patient does not mean you can’t still look at other listings.  In Arizona, you can back out of a short sale contract as long as the short sale lender has not approved the sale, unless you’ve signed that right away via your contract.
  10. Once the approvals come in, the process basically turns into a normal transaction.

I would be happy to answer any questions about the buying short sale process by calling me at 602.790.2804.  You may also contact me by filling out the short form below.

Buying short sale in Arizona can make you big money

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