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Did you know that less than 28% of short sales successfully close?  Because many Realtors are not experienced in negotiating with lenders and do not have the time necessary to commit to such a difficult transaction over two thirds of short sales still do not close!  Will you wish you had chosen a professional instead of your Uncle Joe the part time Realtor when your home goes to foreclosure?  Be sure to choose someone with the pricing, marketing, negotiating and closing experience it takes to get your short sale approved and closed!  With MyArizonaShortSale.com, you work with ALL of the vital parties to a short sale transaction – including a full time negotiator with over 250 closed short sales and a Realtor with valuable pricing knowledge due to their experience listing bank owned property.

Before choosing a Realtor make sure they can show you their results – we have approval letters and testimonials right here on our site.  When you choose to work with the professionals at MyArizonaShortSale.com, you are working with the best!

Common Reasons Short Sales Fails:

Lack of Ability and Knowledge
Aside from maybe a class, many realtors have no experience with short sales. It never occurred to them to learn about it until they took a class in order to cash in. We were doing shorts sales before everybody jumped on the bandwagon – and doing it successfully.

Lack of Experience
More than 90% of all licensed real estate agents had NEVER successfully completed a short sale prior to 2007 (source: MBA). No wonder so many short sales fall through.

Laziness
Too many realtors think that once they learned the basics of short sales, their learning curve stopped. Not true. This business changes every single day. True experts know this and constantly stay abreast of changes and improvements.

There are no shortcuts.

We can tell you first hand that there is no “quick” way to work through a short sale. They happen when they happen. We do our best to make it all work out as quickly as possible – by doing it the right way.

Lack of drive

We didn’t get into the short sale business to get rich. We did it to help good people get out of bad situations. We frequently have to sacrifice some or all of our commissions in order to complete a deal. Any “short sale expert” who isn’t willing to do this isn’t worth even calling.

Picking the wrong property

Not every home is a good a short sale candidate. When we meet with you, we’ll analyze your situation and tell you right away. If we can’t help you, we’ll help you find possible alternatives for keeping your home. Our closing percentage is very high because we’re so selective. We won’t waste your time if we can’t help.

They don’t know what to do.

This is more common than you think. A realtor who doesn’t know anything about short sales finds someone who does, who’s willing to talk him through it. Ask for proof of experience. We’ll be happy to show you plenty.

They don’t know the market.
Some “short sellers” seem to think that because your home is up for a short sale, or headed for foreclosure, then market trends don’t matter. Market trends are everything! How do you think we find an Arizona real estate investor to buy your home?

They don’t care.

Arizona Short sales require communication, constant attention and sometimes hourly follow-up. These are time-sensitive deals that can fall through the cracks at a moment’s notice! Make sure your short seller is really interested in you and selling your home.

They’re not the boss; you are.

Your realtor works for you. If you’re not getting what you expected when you expected it, fire the realtor. At ArizonaShortSale.com, we work every day to make sure that you receive every service you expected and a satisfactory outcome on your short sale.

If you own a home with negative equity or know of someone with negative equity, please contact me at kyle@kylewylogerealestate.com for a free, no obligation consultation to discuss your options according to your individual personal and financial circumstances.  Consultationsare 100% confidential and, as always, our goal is to help you determine the path that is in your best interest personally and financially, both short and long-term.

Kyle Wyloge

RE/MAX Infinity

602.790.2588

kyle@kylewylogerealestate.com

www.myarizonashortsale.com

If you are currently facing a financial hardship or you are in a situation which is causing you to miss payments or sell your home there are several ways that you can be proactive and make the process more simple and stress free.  These tips can help make the process easier for you:

Don’t procrastinate. If you are unable to pay your mortgage – even for only one month, contact your lender and make them aware of your situation.  You should also sit down, determine if this is a long term or temporary situation, and review all options available to you.  If you would like assistance in doing this, please feel free to contact us.  We can discuss all of your options for both staying in your home and selling it.

Prioritize. After determining how you will proceed, prioritize your debts.  If you know you plan on staying in your home it is important to make sure you are not spending money that could be used to pay mortgage payments on other less important debts.  Recovering from missed or skipped mortgage payments is far more difficult than recovering from missed or skipped credit card payments.

Know your finances. Make sure you know what is coming in and out each month and budget accordingly.  Your lender will want to see an itemized list of all of your current income and expenses when they discuss your loan with you.

Know your rights and options. If you have questions about the process or your options feel free to use our website as a resource or contact us, along with a trusted tax professional and/or attorney to discuss any questions or issues you may have.

Do not lose your cool! You are not alone in this situation and you are certainly not without options.  Do not allow yourself to become overwhelmed or ignore the situation.  There is help available!

Develop a plan. Whether you choose to sell your home or make an arrangement with your bank, you should create a plan that extends during this process and well beyond.  This will include where you are moving to, how you will spend or save the money you have from missed payments, etc.  You will also want to decide how you will deal with your lender.

Do your research. Make sure that you know everything you possibly can about your options, the foreclosure process in Arizona and your lenders requirements.

Be prepared. Gather all of your financial information – a summary of income and expenses, bank statements, pay stubs, tax returns, mortgage statements, closing documents from when you purchased your home, a list of your reasons for hardship and any other documents you feel might play a role in working with your banking and have them ready before you contact your lender or someone to assist you with your sale.

Work with trusted professionals. If you need advice or assistance, make sure you are working with knowledgeable, experienced and trusted professionals – we would love to give you a referral should you need information outside of our scope of knowledge!

If you own a home with negative equity or know of someone with negative equity, please contact me at kyle@kylewylogerealestate.com for a free, no obligation consultation to discuss your options according to your individual personal and financial circumstances.  Consultations are 100% confidential and, as always, our goal is to help you determine the path that is in your best interest personally and financially, both short and long-term.

Kyle Wyloge

RE/MAX Infinity

602.790.2588

kyle@kylewylogerealestate.com

www.myarizonashortsale.com

As homeowner in Arizona who is upside down in your mortgage, it is likely you have thought about a short sale.  If you live in Phoenix, Glendale, Tempe, Chandler, Cave Creek, Scottsdale, Mesa and other surrounding areas, you may be facing foreclosure and don’t know where to turn or what to do. A qualified team of short sale experts can help you with your situation. All is not lost and there is an out!

For any number of reasons, people who never expected to have problems find themselves under water in their mortgage.  You may be months behind in your payments, and see absolutely no way out.  The Arizona short sale process is something you should consider; we have helped a considerable amount of people avoid foreclosure.  Foreclosure is not something you want on your credit and should be avoided!

Not all Phoenix real estate teams have experience in the short sale process.  Why does it matter?  An experienced team with extensive knowledge in the process can help make every detail and transaction easier and less stressful.  They know the system, and will market the property well enough in order to find the perfect buyer for your home.  Time is essence in avoiding foreclosure. You want to make certain you have experience on your side.

The term “short sale” simply means that your lender is willing to accept less than what is owed on your mortgage. Short sales are a lengthy process and do take time anywhere from 1 to 4 months. Once your Realtor helps you locate a qualified buyer, the lender will order an appraisal and if your offer is within the fair market value they will issue an approval letter.  If this occurs you avoid foreclosure – and the stigma that often goes along with it.  Your credit is still affected, but not completely ruined as it is with foreclosure.  You will most likely be able to purchase home in two years or less. As with a foreclosure it will be another 5-7 years before you will be able to purchase a home.

The government has even stepped in and is giving initiatives for homeowners facing foreclosure to follow through with a short sale. The HAFA (home affordable foreclosure alternatives) program allows borrowers to be fully released from future liability for the first mortgage debt. The HAFA program also provides financial incentives; Up to $3,000 for relocation assistance and also an additional $1,500 for service fees and secondary liens.

In order to qualify for a short sale, you will need to prove a financial hardship to your lender.  This could be divorce, loss of job, death in the family, health issues, surgery/medical bills, loss of hours etc.  A qualified short sale team can explain the process in-depth, so that you understand exactly how it works.  If you are facing the loss of your home, DO NOT STALL!  There is a limited time before foreclosure will take place! If you or anyone you know is facing foreclosure and or has negative equity in there home have them contact us at 480.289.4364 or log on to MyArizonaShortSale.com for a free no obligation consultation.

Modern homebuyers will inevitably come across one or more properties currently classified as a short sale. A short sale is an attempt by the current owner to sell a home in lieu of the bank taking it back through foreclosure proceedings, thus partially salvaging their credit rating and lifting the burden of heavy mortgage debt. The entire short sale process hinges on the hope that the bank will take a loss now, approve the sale, and eliminate the costly process of foreclosing, clearing, and reselling a home. Obviously, this is a big hope on behalf of prospective homebuyers as well and they need to understand some things in order to lessen the chance for disappointment of unapproved short sales. This is what they should know:

1) Price is usually set by the agent & seller, not bank – The agent and seller often create a very low asking price in order to attract buyers. The bank is normally unaware of the asking price; however, the bank has the final say in what an acceptable offer will be. Since the bank has the power to ultimately accept or deny offers, their lack of price awareness often leads to the process taking longer than anticipated. The bottom line is that the buyer needs to remain positive and patient throughout the entire process, sometimes even for months.

2) Loans owned by 1 bank usually better than 2 – If the seller has loans owned by two different banks it is a lot more difficult to approve the short sale. This is something the agent or the buyer cannot control; it simply depends on the willingness of the bank or banks involved. While the reasons are beyond the scope of this guide, buyers should know that when the seller only has loan(s) with one bank the short sale often becomes more buyer-friendly. A savvy Realtor can let you know this type of information.

3) Agent must check comparables before submitting offer – The agent must be sure to check recent home sales in the area to give buyers a better idea of the properties that are selling. This will give the agent and the seller appropriate grounds for an asking price that will be more likely to be approved by the bank. Checking comparables will also give the buyer a better knowledge of what price homes in the neighborhood are selling for and ultimately make them a more informed homebuyer.

4) Don’t hang your hat on the property – Short sales aren’t necessarily “short.” It can sometimes be a very long process. Don’t get your hopes up for just one property, keep your options open and continue to actively look at multiple properties. Buyers must remain optimistic, the right property will come along. In most areas it is completely legal and risk-free to have multiple offers out at any given time with the proper contingencies.

5) Lowball offers get slow or no response – Remember that the bank is typically unaware of the pricing during a short sale. When lowball offers stream into the bank they are often scoffed at and rejected, giving the prospected buyers little or no feedback. Surprisingly, it may also take painstakingly long to hear back even on good offers due to the high volume of transactions lenders are inundated with these days.

6) Sellers with other properties or too strong of financials may not qualify for short sale and/or may be asked to pay the difference – Sellers that own more than a handful of properties or have an extremely large net worth will probably not be eligible for short sale. In some cases the seller will be asked to pay the difference of the sale. The seller might even need to sign a promissory note stating that they will pay back all or most of the debt. This has virtually no effect on the buyer as long as the seller cooperates.

7) “Approved” prices are quickest – It is important to remember that short sales are not always timely; however, making an offer on an “approved short sale” can be a quicker process. An “approved short sale” has a price that has already been given the green light by the bank. This could be due to the fact that another interested buyer made an offer that was approved, but didn’t end up buying the property. These types of short sales are some of the most highly desirable.

Some banks look want strongest buyers, some want strongest offers – The bank has all the power in approving short sales. The bank can pick the most appealing buyer, which may mean different things to different banks. Some banks may prefer the buyers with large down payments while others just want the highest price regardless of down payment. Many buyers want to know if they will get a deeper discount for an all cash offer. This is very hard to predict and one will never really know until they make an offer. As long as the buyer is surrounded by a good team we would advise them to do just that.

9) Repairs are seldom done, credit is more frequent – If there are improvements that need to be made on a home, even if they are necessary to get a loan, it is often unlikely that they will be done. Typically there is some sort of credit issued and the buyer must take the responsibility of fixing anything that is broken.

10) When you get approval, MUST close on time – During a short sale there is no leniency with the closing escrow date as there often is in a traditional sale. During a short sale, exceptions are rarely made and the buyer must close on time. Because of this, it is important to take care of all loan paperwork immediately after opening escrow. We’d advise buyers to be extra prepared and try to have the loan finalized a few days in advance of the closing date. If there is going to be an issue that will prevent closing on time, a request for an extension will need to be made immediately. If the request is made early enough, many banks will grant an extension but don’t just assume it will happen.