Short Sales – Frequently Asked Questions
Well-planned short sales of Phoenix Arizona Homes may have significant advantages over foreclosures. Indeed, a close look at the Phoenix MLS shows a relatively high percentage of short sales among all Phoenix Homes for
· How do I qualify for a short sale of my Phoenix Arizona Home?
Generally, you need a qualifying hardship such as a job loss, unforeseen medical expenses or some other reason that you shows you have a financial hardship and an inability to pay the mortgage.
· Should I move out of my home, or should I stay in the home during the short sale process?
Staying in the home is generally a great idea. A homeowner cleaning and taking care of the home who can also help answer buyer questions helps with the sale process. Additionally, while going through the process, most homeowners are unable to make mortgage payments. So, take advantage of the free rent during the process.
· Should I leave the utilities on until my Phoenix Arizona Home is sold?
Yes, the Phoenix Real Estate contract requires the utilities to stay on, but in addition, having the utilities on helps in selling the home. A cooler, comfortable home in summer or a clean, blue pool can make all the difference in swaying a buyer to purchase your home instead of some other home down the street.
· What repairs should I complete before selling my home?
As a rule, the only repairs to complete should be inexpensive repairs or repairs that if not complete would prevent the sale of the home.
· Do I keep paying the mortgage payment?
As a general rule, as long as you can pay the mortgage, you should pay the mortgage. Not making the mortgage payment is detrimental to your credit score and should be avoided if possible. However, some investors are refusing to process short sales unless a seller is delinquent on a payment. In those cases, a seller must decide whether to miss a mortgage payment or wait to start the short sale.
· How long does it take to complete a short sale?
When the bank service companies are doing a great job, a short sale can often be completed within 45 days of the seller accepting an offer. However, many bank service companies tend to drag the process out much longer.
· Does my mortgage have mortgage insurance on the loan?
Of about 1 of every 7 short sales we process, an investor took out mortgage insurance on the loan.
· How do I get my loan services company to process my file faster?
Begging, pleading, screaming …these are just a few different ways to get a loan services company to move faster. A more effective way is to escalate problems to higher-level management who can make things happen.
· Will I be able to buy a car during the short sale process?
Depending on your credit, you may or may not be able to purchase a car. Obviously, if you are missing mortgage payments, new purchases based on credit are less likely to happen.
· What are the downside consequences of the short sale?
There are potential tax and legal consequences after a short sale is complete, so be sure to get good tax and legal advice throughout the process.
In a nutshell, short sales can usually offer significant advantages over foreclosures, but they demand specific knowledge, expertise and strategy to successfully complete. Our Phoenix AZ Realtors have the short sale knowledge and experience to help you succeed – give us a call today!
