Short Sales in Chandler AZ have represented about 17% of all sales during the period of 2010 and through May of 2011. There have been 1,568 short sales in Chandler AZ out of 6,481 home sales in Chandler AZ. Of these total home sales, 2,447 were Chandler bank owned homes which represented 37% of total Chandler home sales from 2010 through May of 2011. The combined total of short sales in Chandler AZ and foreclosures in Chandler AZ are 61% which is the Valley wide average for distressed property sales in Metro Phoenix. Search Short Sales in Chandler AZ or Chandler Bank Owned Homes.
Short Sales are important because you can buy a home after a short sale without waiting an extended period of time if you have not had any late payments. So it is very important that if you are considering a short sale to make your payments. Banks are very motivated to do short sales instead of foreclosures due to their risk exposure of a foreclosure.
What is a short sale? a short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved. President Bush enacted legislation that protects the home owner from deficiency judgments from the lenders when they have to do a short sale and the property is sold for less than the loan amount. There are certain qualifications such as the second or third loans or refinances of the first loan must have been used for improvements to the property. This would exclude “cash out” loans; other criteria would include limiting this protection to primary residences. To know the implications of your situation you need to speak with an attorney; in fact a qualified Realtor will not take a short sale listing until the seller has had an initial consultation with legal counsel. This is for the protection of the seller and is of great benefit because often an initial investment of a few hundred dollars in legal fees can often save a seller thousands of dollars in penalties, taxes and other fees.
But to be technical, here’s a more official definition:
• A homeowner is ‘short’ when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.
• For homeowners to qualify for a short sale, they must fall into all of the following circumstances:
• Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
• Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
• Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
This of course is a very brief article on short sales; however, hopefully this has given you enough information to consider perusing this option. Many banks are avoiding foreclosure as of Spring of 2011 because of the liability of improper processing and legal risks the them so if there has ever been a time to get a short sale approved, now is the time to get moving! I hope this information is helpful to you and please contact me for a more detailed information package if need be. If you live in Chandler AZ and are considering a short sale or going the route of a foreclosure, give me a call as well as your attorney. Often you can get a consultation with an attorney for about $250 which can save you thousands of dollars and as mentioned, short sales done without late payments might enable you to purchase another home instead of having to wait the customary three years that you would if you were to do a foreclosure. If you are looking to purchase a short sale in Chandler AZ or Chandler bank owned homes go to the advanced search feature on this site and begin your search or click on these links. You may also search all homes in the Valley on this site.