Home Buying in Arizona>Question Details

Canadian Web…, Home Buyer in Arizona

How does a short sale work?

Asked by Canadian Webster, Arizona Sun Dec 11, 2011

Canadians looking to buy home in Arizona and not sure of the technicalities of short term sales and forclosures

Help the community by answering this question:


A short sale occurs when an owner has proven hardship to the lender and can sell for less than owed on his/her current mortgage; the seller can accept whatever offer he/she wishes, but the lender decides to accept, reject, or counteroffer. Short sales are by no means fast sales and much will depend on the number of liens involved, who is negotiating the sale on behalf of the seller, etc.; therefore much patience is oftentimes necessary.
2 votes Thank Flag Link Sun Dec 11, 2011
Buying short sale property or foreclosures can be tricky. while this way you can probably find some excellent investments; you need a competent realtor to help your search.

Good home hunting.

1 vote Thank Flag Link Sun Dec 11, 2011
The most frustrating thing that you can do is get involved with a short sale where neither agent has a clue how to handle it. That is why I recommend that you search for an agent with a CDPE designation if you are seriously thinking about purchasing a short sale. Those agents have gone the extra mile to learn the procedures required and the forms needed to complete a short sale transaction.

If you need help finding a CDPE agent in Arizona, let me know and I will be happy to give you a referral.
1 vote Thank Flag Link Sun Dec 11, 2011
For starters, "short sales" are NOT "short term sales." Huge difference. And short sales are a VERY complex and challenging (if not insane) segment of the real estate market. I would recommend that you take a look at a few blog posts about them, and you can start by clicking on the link below.

Then you should attempt to secure a working relationship with a real estate agent who can assist and represent you in your home searching and buying process.

All the best!
1 vote Thank Flag Link Sun Dec 11, 2011
CDPE applies for the listing agent - not so much for the buyers agent, as there's next to nothing the buyers agent can do to influence the process. Also, akin to the old statement "Beware Romans Bearing Gifts", beware of real estate agents offering referrals. Some are trying to be helpful. Some are hoping to collect a referral fee.

The more certain bet, Webster, is a foreclosure. The bank already owns the home and is motivated to sell. You will generally receive a response on your offer within a couple of days and can close escrow in a reasonable time frame.

Short sales are different in that the lender has to approve the sale and their process to decide whether or not to accept a short sale can vary from a handful of weeks to several months. You and the seller may agree on a sales price but the lender either may not answer or may demand a higher sales price to approve the sale.

If you're in the mood to roll the dice and see what the lender might say, then a short sale may be worth pursuing but it's the more complicated road to hoe.
0 votes Thank Flag Link Wed Dec 14, 2011
Sorry to disagree, Brenda, but an agent having a CDPE designation doesn't mean a stinking thing - except of course that they paid to go through a course. What matters most is their real life experience with short sales, professionalism, communication skills, personality, etc. Canadian Webster, I would highly recommend that you do seek out a Buyer's Agent, but take the time to talk with them and find out of you get the feeling that you can 'trust' them to always be in your corner.
0 votes Thank Flag Link Sun Dec 11, 2011
Dear Canadian:

The seller's bank has to approve the sale after a contract with the buyer is accepted because the home is being sold for less than the balance owed on the seller's mortgage balance.

For a complete explanation: http://www.arizonahomesland.com/arizonashortsales.html

Jeff Masich
Arizona Homes and Land
HomeSmart Realty
Web Reference: http://ArizonaHomesLand.com
0 votes Thank Flag Link Sun Dec 11, 2011
p.s. Short sales are not even in the same category as bank owned foreclosures. Once again, you're on the right track by asking questions, and if you'd like to do some more reading about buying foreclosures in Arizona, just follow the below link.
0 votes Thank Flag Link Sun Dec 11, 2011
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