If you are moving to the Gilbert or Chandler area, or are just thinking of buying a short sale in Gilbert Arizona, this post is for you.  There are great deals that can be found in the form of Short Sales but you must be armed with knowledge and a really good buyer’s agent.  A Short Sale transaction can be a: exhausting, b: drawn out, and c: scary.  Basically I tell my clients, you can get a home for $20-50 grand off, but you have to have lots of patience.

What does “Short Sale” mean?

Let’s define  a Short Sale real quick, in plain English:  a homeowner knows they cannot make upcoming mortgage payments and is trying to arrange with the bank/lender to take less than what is owed on the property to avoid foreclosure.  Also known as a “pre-foreclosure”.

1. Understand no one will make repairs on the home.  Yes, you are entitled to an inspection during the contract period but neither the seller nor the Bank will make repairs.
2. The seller can not negotiate your offer.  All offers are sent directly to the Bank, specifically the “loss mitigator”. They might negotiate with you, they might just say yes or no to your offer.
3. The Bank can take as long as they want to respond to your offer.  Remember to get a great deal on a home, you need great patience.
4. The Bank can look at as many offers as they want, yours is not accepted until it’s signed.  Specifically, your offer can sit on their desk for a week and if a higher offer comes in during that time, c’est la vie.
5. If there is a Second Mortgage, that Bank has to agree to the Short Sale as well.  If the current value is so low that the Second Bank isn’t getting any money, they might not agree to the sale.
6. If there are outstanding tax or HOA bills, the Deal could fall apart in the last 72 hours.  A good buyer’s agent will do a preliminary title report at the beginning of the contract and every 30 days until the Deal closes. 
7. The seller will probably pick the title and escrow company, rather than the customary buyer’s choice.  This is because they have to sign an authorization letter for the Bank to disclose loan information so the title company is usually picked in the very beginning.
8. A good buyer’s agent will use the Arizona Short Sale Addendum with the contract.  It is available to all Realtors and it helps to cover both the seller and the buyer in this crazy transaction.  A good agent will use it to its fullest extent.
9. Understand that you might have to be pre-approved by the Bank that is being shorted.  For example, if Countrywide is the lender that is allowing the Short Sale, they might ask that you as the buyer, be pre-approved through them so they feel more confident in your ability to close the deal. 
10. As the buyer of a Short Sale, do not put any utilities in your name or even rent the U-Haul until the deed is recorded and the keys are in your hand.  Hardly any Short Sale actually closes on the specified day, there are just too many cooks in the kitchen.

On that note, remember to lock your rate on your own loan 7-14 days longer than you think you need to.  That way, you can still afford your monthly payment, even if the deal takes a day or two longer to close. 

 As you can tell, there are many ins and outs to buying a Short Sale or a Foreclosure.  If you are looking in the Chandler or Gilbert area, feel free to give me a call if you have any questions!

So many, many of my clients that are moving to Gilbert Arizona are looking for short sales, preforeclosures, or foreclosures. There are so many incredible deals out there right now, check these out!

This is the best deal of the week, I think. It has 4 bedrooms plus a den PLUS a diving pool. Almost 2,200 square feet, in a great school and family area for only $180,000

This home is in the heart of Gilbert, has 4 bedrooms, plus a pool with a waterfall, and mature palm trees. 2,000 square feet for $195,000.

This is a huge home, over 2800 square feet. It has 4 bedrooms upstairs, plus a loft, and a den downstairs. A large backyard. Best of both worlds: low Mesa taxes and Awesome Gilbert Schools. It’s a short sale offered at $229,000.

This one is even bigger. Over 3,000 square feet, with 5 bedrooms and a huge loft. This one has a bank-approved price at $230,000. Who wants it?

Short sales are home that have not been foreclosed on yet. The seller is negotiating with the bank to take less than what is owed for the home, hence the term “short sale”. By no means does the term mean a “short” amount of time. Sometimes the banks/lenders are highly motivated and will get back to you quickly. Other times it can take weeks or even months just to find out if they accept your offer.

Also, banks/lenders will not do any repairs. Sometimes though, they will pay for your closing costs. If you are relocating and would like more information about short sales in the Gilbert, Chandler, or Mesa, Arizona area, just contact me. I’d be happy to answer your questions.