Unfortunately, Arizona short sales are not going away any time soon. At first, we as real estate professionals and buyers tried to ignore them and pass them by, but there are so many Arizona short sale homes on the market today, that our buyers are left with very few homes to choose from if short sales aren’t considered in the selection process.
There are ways to help ease the pain and frustration for your buyers when a short sale is involved. Before writing an offer on a short sale home, it is critical for the Buyer’s agent to ask the listing agent direct and specific questions. These questions will save the agent and buyer a tremendous amount of time and disappointment as well as keeping the buyer, YOUR BUYER.
Our clients rely on our expertise, knowledge and experience. The process of purchasing a short sale is much more involved than a normal transaction. It is imperative that we educate our buyers as to this process and have the knowledge to make this a smooth transaction.
Be sure as a real estate agent these questions are asked prior to making an offer on a home: These important questions will help make a successful transaction.
How many mortgage liens are on the property? If you are dealing with more than one lender, such as a 1st Mortgage and a 2nd Home Equity, the short sale may never work. On a short sale, ALL lenders have to be in agreement and approve the short sale.
Does only one bank hold the note? A short sale usually means there is not enough money to pay off the first mortgage. If there is a 2nd lien holder there is no money to pay them either, however they have to approve the short sale as does the first lien holder.
Have you received any other offers? The MLS Rules and Regulations have set rules to follow that address multiple offers. Be sure you and the listing agent are well versed with the rules.
Is the short sale documentation complete? This should be done by the seller with assistance from the listing agent before the home is placed on the market. Offers have no substance and will not be entertained until this short sale package is complete and approved by the lender. A response from the lender on your offer will be a mute point if this paperwork has not been completed.
How familiar are you with the bank’s process? This will give you an idea if the listing agent has done any short sale transactions in the past. This process is essential to all parties. Short sales will be around for at a few more years. Asking these questions will better position you and your buyer to a smoother transaction and close of escrow. This time line will ease some of your buyer’s concerns and frustrations.