Phoenix Short Sales

Recently I listed a town home as a short sale for a Veteran owner who was going to do a Deed in Lieu or what I like to call a “Friendly Foreclosure” until he contacted me through a friend and we had the talk about how selling it as a Short Sale was much more advantageous to them instead of Foreclosure. We agreed and I took his short sale listing on to sell and successfully negotiate it for him.

During the listing the complex was approved for FHA / VA financing and of course, knowing that, we could take FHA or VA offers to purchase which only made things better broadening our buyer pool.

So off we go, an FHA offer comes in and we start the negotiations with the Bank (servicer), to settle on the amounts needed to make the “Net” numbers (the banks bottom line for money coming in to purchase).

After about 3 weeks of back and forth we worked out the numbers and the bank agreed to sell the home short without pursuing the home owner for deficiency (the difference of what was owed vs what it was sold for, thus the term “short” sale) and without the need of the owner carrying back an unsecured note.

The buyer starts the loan process and after the lender requests a report from the HOA (Home Owners Association) or property manager it comes back as “Not Approved” for FHA financing… Wait, What?!

Seems they let the approved status expire! That’s right, now every other unit in the complex that is under contract or listed for sale is no longer able to sell to FHA VA buyers and the list of those is full.

I did re-list the property and re-negotiated the Sort Sale with a cash buyer, but the whole point is…

If you are selling ANYTHING real estate that requires HUD approval (department of Housing and Urban Development HUD is the governing entity determining if the units qualify for FHA financing) make sure it is HUD approved and check the term of expiration.

Check and see by going to the HUD Approved Condo Page (click this link)

Even though they may be re-applying they may not be able to achieve reinstatement because of the number of units occupied by owners versus non-occupant owners renting the units out. This is known as an “Occupancy Ratio”.

If you own a Town Home or Condo that “Was” HUD approved and you are going to sell your property, you should go to the HUD web site and search your complex name and see whether or not it still qualifies and if it is still going to when you predict you will be able to close escrow.

The other important thing to remember is that even though it may be on the list, it still may not qualify with the lender is the occupancy ration is less that the investor allows!

SO, it would also be a very good thing for you to know as an owner how many units are owner occupied and how many are rented. Ratio’s for loan approval may vary so check with a mortgage lender to find out before accepting an offer.

Happy hunting!

Stew Keene – Professional Phoenix Realtor – Short Sale Negotiator

Helping Veterans The Best Way I Know How

On Memorial Day…

American Pride and Strength

I often think about how to help out Veterans who have served and it suddenly dawned on me, I provide that through my real estate business.

Some of you know that I list and successfully negotiate Short Sale homes for sellers stricken by a hard economy or other hardship.

Recently, I successfully negotiated the terms of agreement on a Town Home in Glendale Arizona with Wells Fargo who represented and communicated with the VA (Veterans Association) on behalf of a retired Veteran who served active duty in the Vietnam war.

So as I sat here thinking of how to write something on my Phoenix Realtor blog about our Veterans and the meaning of memorial day, my mind is crunching all kinds of stuff Like “how can I help”, then it suddenly dawns on me that I do that every time I successfully negotiate a Short Sale home for a Veteran or help a Veteran purchase a home using a VA benefit.

These men and women in the armed service continue to serve and protect us and it is my great honor and priveledge to help protect and serve each Veteran who calls me and asks for my help using my experience and real estate expertise.

Thank You to all of you Veterans who have served through so many conflicts.

Here is a great Memorial Day video for Veterans Everywhere

May God Keep And Protect You All,

Stew Keene – Phoenix Realtor – Certified Short Sale Negotiator

The Phoenix Real Estate Market Is Changing

The market here in Phoenix and the surrounding metro area is changing. It’s very robust. Almost every Realtor I have spoken to feels the same way. Their clients are having to increase their purchase amounts, respond to multiple counter offers and/or being disappointed because they were outbid.

The challenges in this market in Phoenix are a complete switch from even a year ago.

So what has changed? Nothing! that’s right, nothing!

Buyers have ALWAYS been drawn to the valley of the sun because of the sunshine.

BUT Wait! There’s More! Phoenix also has some of the most affordable sunshine properties you can find and in the most desirable areas.

These homes sell now so quickly I am writing offers on the day they are listed just trying to beat that next offer! this is good for the market but very frustrating for buyers.

Most believe that the market is still on a down turn. This month alone the Arizona Real Estate Multiple Listing Service has shown 8500 sales and last month it was about 9000. Those sales numbers are HUGE! There’s a little thing called supply and demand. If you start really looking closely (as I do of course we very day) you can see how fast properties that are listed are under contract and sold. It happens so fast now it will blow your mind.

A good example is the homes in Desert Ridge and that general area. Anything under 300k sells almost immediately if it is at least 2000 sq feet. I have seen it live time because I preview that area so much.

The hot ticket is 3 bedroom, 2 bathroom homes under 250k in the north Phoenix or Scottsdale area.

Retiree’s are buying these, renting them out and planning on occupying in 2-5 years. These are great investments for people contemplating retirement in Phoenix and Scottsdale because the market is starting to show price increases. 5 years should show significant appreciation which may allow them to improve the home with a pool, interior upgrades and so on to make it their retirement treasure with a home equity loan or cash out refinance.

You will hear many Realtors telling you that NOW is the time to purchase and now you should really be heading that call.

Have a Great Mothers Day!

Stew Keene – Professional Realtor – North Phoenix and Scottsdale Arizona Homes and Land