Damien Osip, Home Buyer in Cooley Station North,...

I am considering buying a short sale home at Cooley station north and want to get advice on it?

Asked by Damien Osip, Cooley Station North, Gilbert, AZ Sat Jul 25, 2009

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Answers

5
Short sales can be very frustrating due to the time of response from the lender. Hopefully your realtor has educated you on the short sale process. Best of luck on your purchase.
2 votes Thank Flag Link Sat Jul 25, 2009
The community and concept were very nice .. however one of the bigger risks with this community is the original builder (Trend Homes) has filed for bankruptcy, is no longer building new homes in that community (~32% built - ~280/765 lots), and the company that owned the subdivided lots has now turned those over to Band of America. The community has many nice amenities (parks, greenbelt areas, walking, 3 community swimming pools) - but because the HOA fees are based on the entire community and the unfinished lots (and some homeowners with financial issues0 are not paying HOA dues - this leaves the HOA struggling for how to best apply the limited funds to attempt to maintain the community. For example, per a recent news story - the community is closing 2 of the 3 swimming pools. Read more about it here:

http://www.azcentral.com/arizonarepublic/business/articles/2…

There are examples of communities where the original builder went bankrupt and a new developer was able to purchase the land and build homes for a profit - for example, the Portello community in Chandler was recently taken over by Blanford Homes after Randolf Martin was unable to finish the development. The sales office is extremely busy and they are almost sold out within just a few months. But you need to weigh the risks and figure out what is best for you.

Also, of the homes that have been sold, there are currently 29 Notice of Foreclosures in that neighborhood (~10%). These are homes where the currently homeowner is struggling to pay their mortgage and the bank has given the homeowner notice that they could foreclose on their property unless action is taken.

If you're comfortable with the idea of the community - then of couse there are the "frustrations" that go along with a short sale as mentioned below by other Realtors. There are success stories too with short sales, but it takes patience.

I'd be happy to talk to you more about potential issues and answer any questions you have. There's also several other communities with homes similiar to what you see in Cooley Station North which I can send to you. Also, I hope that you've heard about the program related to foreclosure homes where you can have over 20% of the purchase price provided for you (quite a great deal if you qualify!)

I hope I've been able to give you some good information to consider...and you found the information helpful.

:) Patty Fisch
West USA Realty Revelation
Office: (480) 722-9800
Email: pattyfisch@westusa.com
0 votes Thank Flag Link Sun Jul 26, 2009
My general advice to buyers is to stay away from short sales. Below are a few reasons why:

* They can take many months (up to 6 months in some cases) just to get a response from the bank - which can be an acceptance, counter-offer or rejection.

* If the property has more than one lien holder, you are at the mercy and timing of both. Plus both will have to agree on how much go to the jr lien holders, which rarely occurs. Chances of this ones closing are even smaller.

* In most instances the seller keeps the property active (which can be done by several ways without violating any rules) and can have well over 20 offers on the same property.

* Many times the bank counter-offers with a higher price and/or the bids drive the price up. It is very common for short sales to sell for over asking price. That is why on a short sale the listing price might be viewed more like a start bidding point rather than the real price.

* Based on the latest figures only about 10% of short sales ever close. If you add to that the fact that each property can have multiple bids, you will see that each individual offer could have less than a 1% chance of getting the property after waiting many months for it.

- Foreclosures in most cases are a lot better option for the buyer. The listed price has been approved by the bank and they usually respond in 3 to 5 days (in some rare cases they might take up to 2 weeks, but that is not common). Biddings are also getting more common every day on foreclosures, although that is still not always the case.

Cooley Station is a great community, but there are also sevral factors to consider when buying in that community.

Hopefully you and your agent will be discussing all the different concerns (too many to list or discuss here), before you move forward.


Carlos J. Ramirez, PC, ABR, CNE
Associate Broker, HomeSmart -
http://www.SmartAZRealty.com
0 votes Thank Flag Link Sun Jul 26, 2009
Well..... what advice are you looking for?

Cooley Station is a nice community, different architecture than the standard southwest look. In my opinion Cooley has a long way to go, currently there are 18 active listing , most short sales. The builder still has several empty lots. I would prefer Gilbert public schools, instead of Higley. That`s just me.

It really depends on price, condition and location....

Good Luck
Patrick
480-543-9899
0 votes Thank Flag Link Sat Jul 25, 2009
Mr.P, Other/Just Looking in Arizona
MVP'08
What type of advice would you like? To buy, not to buy? Short sale vs. bank owned? Cash vs. loan?
0 votes Thank Flag Link Sat Jul 25, 2009
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