how long do short sales take in arizona and are advertized prices real?

Asked by Don Hall, Sunrise Manor, Las Vegas, NV Sat Nov 5, 2011

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The Hanten G…, , Phoenix, AZ
Thu Nov 10, 2011
Buyer beware when looking at short sales. Often times after the bank negotiates the agreeable price they will take the bank can slip into the closing docs or wait until the end to advise that they want a promissory note from the Seller. Most sellers walk away at this point and allow their homes to go to foreclosure. So be very aware that you may have a date to close that the bank expects all parites to meet but it is you the Buyer who must be willing to front and potentially lose your Home Inspection $350, Termite Inspection $50, Appraisal $400 and any other inspections that you may choose to perform. If the house doesn't close these funds are gone to you the buyer. Talk with your Realtor about the pros and cons of short sales and be aware of what you are getting into before you start. Be sure to work with a seasoned Real Estate Broker.

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Spirit Messi…, Agent, Tucson, AZ
Sun Nov 6, 2011
They take as long as they take, I advise to my buyer's that they can take up to 6 months. What do you consider "real"? In laymen's terms a short sale listing is listed at a price no one knows IF the bank will accept (unless it is a rare pre-approved short sale). The sellers have agreed to it, but why not? They are asking the bank to forgive the debt on the difference of what they owe Vs the listing price or contract price.

Talk to & work with a local Realtor, one who has experience working as a buyer's agent with short sales.
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, ,
Sun Nov 6, 2011
Good morning Don Hall,

A short sale is a different kind of transaction than the normal real estate purchase. You are essentially going to wait while the Seller negotiates with their Lender(s) for approval to sell you the house at a price lower than what is owed to the Lender(s). This process can be lengthy, even stretching out to many months before you have a final answer.

You'll need two things during that time:

1. Patience. While you've submitted all your documents to your Lender for your mortgage approval, and you keep your documents current and updated, you'll grow frustrated with the lack of any communication from the Seller about the status of the short sale. This is common, both the poor communication and the Buyer's frustration. Prepare for it.

2. Maintain your credit scores. Be sure not to make any dramatic changes to your credit report that could affect your credit scores. Pay all bills on time. Don't CLOSE any accounts. Don't open any new accounts. Don't run up your outstanding balances to max your revolving debt.

Once the short sale is approved, you may find the price you offered is not acceptable to the Seller's Lender. They may come back and counter-offer your price, so you will have to reconsider at that time if you wish to pay more than your original offered price.

The three rules of real estate: Location, Location, Location.
The three rules of short sales: Patience, Patience, Patience.
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Shanna Rogers, Agent, Murrieta, CA
Sat Nov 5, 2011
Hi Don,

How long short sales take depends on the lender or lenders that have to approve the short sale. If there is only one loan, it will take less time than if there is more than one loan. It also depends on the lender(s) - some are faster than others. Another factor is if the offer is at or near current market value of the property. There are many, many factors that can affect the timing. That said, I have had short sales approved in under 24 hours and I've had some approved in a couple months. Keep in mind, once there is WRITTEN approval, you have to add the time for closing which could be 30-45 days.

As for advertised prices being 'real'. Do not base an offer on list price (unless it states the lender(s) has already approved the short sale at list price). Have your Realtor do a Comparative Market Analysis (CMA) on the property using SOLD comps within a 1 mile radius of the property (the closer, the better) that have SOLD in the last 3-6 months. This will give you current market value and this is what your offer should be based on - not necessarily on list price.

Before a lender(s) will approve a short sale, they will order a BPO (similar to a CMA) or an appraisal to be done so they know the current market value of the property. You may as well submit your offer at or near current market value so you don't have to keep going back and forth with the lender(s) with counteroffers which will increase the time for approval - if they don't just reject your offer for being too low.

Good luck.

Shanna Rogers
SR Realty
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Scott Godzyk, Agent, Manchester, NH
Sat Nov 5, 2011
Don unfortanately some prices are "not real". the problem is inexpereinced agents will place ultra low asking prices on short sales in hopes of attracting more offers, the truth is banks will look to assess what the house is worth in todays market. Banks will usually approve short sales that are near this market value, not much under it.

AS far an average, the average short sale takes 10-12 weeks..…

Please see my blog for tips on buying a short sale
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