Avoid Foreclosure Arizona

Although it is tougher to qualify for a home loan in Phoenix, Arizona these days, now is a great time to buy with the troubled housing market. You can find a great home for a low price.
If you are looking at purchasing short sale homes in Phoenix, AZ, you are not the only one. These short sale homes are a direct results of the crumbling housing market
Short sale homes are exactly as they sound. They are homes that are sold as short sales. The owners of short sale homes have not made their mortgage payments and they want to avoid foreclosure. So this creates short sale homes. Basically, with short sale homes, the home buyer borrowed a pile of money and now the home is not worth that much anymore. For example, Joe Smith borrowed $500,000 to buy a $500,000 home. However, because the housing market is in disarray, his home is now only worth $275,000. So Joe Smith is paying the $500,000 mortgage on a home that is only worth about half as much. And quite frankly, Joe Smith doesn't like that. So, he, like many others have decided, is going to short sell his house. Hence, the term short sale homes.
Short sale homes allow the home owner to sell the property at its current value and walk away from it without facing foreclosure. It seems like it is too good to be true, these short sale homes. But in fact, it has benefits to all parties concerned.
-The home owner gets to sell his home that is not valued the same as his mortgage anymore. With short sale homes, the bank often forgives the remainder of the debt (why would they do that? Keep reading!) Also, by selling the home and avoiding foreclosure with short sale homes, the previous home owners can keep their credit in relatively good standing and purchase a new home in a few short years OR LESS!
-For the lenders that allow short sale homes, it is not an ideal situation. However, it is a better outcome for them, approving short sale homes, than if they had to foreclose on all of the homes that have defaulting mortgages. So, lenders, in many cases, will forgive the remaining debt on the mortgage in order to avoid taking the home over in foreclosure. Remember that ultimately, the bank only wants money. They have no interest in collecting real estate. Every home that they foreclose on costs them thousands of dollars in legal fees. Furthermore, the foreclosed home will get a much smaller selling price at a foreclosure sale than it does if they allow short sale homes.
-For the buyer, short sale homes are the perfect opportunity to get a home that is good condition for a bargain price. Remember, the home owner has not just walked away from the home abandoning it in meager condition as they may in foreclosure.
Short sale homes give all parties, the buyer, the seller, and the lender the best outcome from a bad situation.

For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.

We are embarking on day two with Trent Chapman and we're amazed by the number of appearances Trent has had on shortsalepowerhour.com. We asked Trent to come back to talk about the Short Sale Genius Designation program. Everybody knows that we are not big fans of designations. We have contributed on our own designation in recent times, but we stole that from Trent. However, Trent has decided to do a real designation. The designation is for agents who work with distressed properties.

The designation is dissimilar from other designations. With other designations, you go to a seminar and take a test and get your designation. With the Short Sale Genius designation, there are distinct levels based on how many short sales you have completed.

If you take the class you will get a general designation, but it will also note how many short sales you have completed. Trent merely figured that taking a class and passing a test didn't make somebody an expert. So, he decided to introduce a little bit of common sense and integrity into the method.

On a different note, software is something that lots of other agents ask about. Trent offers software that is state of the art with features that assist the agent that is doing a few transactions or hundreds. His software actually coaches you along in the short sale route. There are red flags that let you know if a folder is out of compliance or taking excessively long. There is also a characteristic that allows the house owner to log in and see the status of their folder. It was specially created for short sales. Check out the theshortsalegenius.com

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Mesa - Avoid Foreclosure Arizona

Watch Kevin and Fred, Short Sale Specialists, on the Short Sale Power Hour. Video for Short Sale Specialists.

Do you hear murmurs at the office or the gym in Mesa, AZ about short sales and question what in the world they are talking about? Short sales are a handy little term that refer to the sales of homes. The term itself kind of explains it all if you understand what 'short' refers to in short sales. Cleary, because short sales refer to homes, refer to real estate transactions. Short sales are simply selling a property when the purchasing price is short of the amount that the home owner needs to pay off the mortgage loan.
Short sales in Mesa, Arizona occur when the owner of the property owes more than the house could be possibly be sold for. The owner will need to get approval from the bank that gave him his mortgage to see if short sales can be used to sell the house for less than what he owes the bank.
To explain a little better, short sales are when the bank lets the home owner sell the home for less money. Investors especially love to buy short sales because they are a bargain. Short sales are a good investment for anyone, usually.
Anyone can purchase short sales and it is a good deal for all of the parties involved. Sometimes people think that short sales are a bad thing to get involved with, but they don't know what they are talking about. People who sell there home using short sales are doing it on purpose. It is their plan to use short sales of their home to avoid having foreclosure from the bank. If they have their house foreclosed on, the bank will take it back and the home owner will be kicked out, probably by the sheriff.
With short sales, it is a good deal for everyone. As we said earlier, the buyer gets short sales at a discounted price. So they will get a nice home for cheap and they can live in it. For the person that owns the home and wants to use short sales to get rid of it, they have benefits too. Short sales are usually for home dwellers that can not afford to pay for their home any more. So, they go to the bank and say that they want to use short sales to sell their home. If the bank agrees, the home owner can sell his home for less than they need to pay off the mortgage. This is good because they don't have any money.
The bank comes out of this well too. If the bank allows short sales, they will not have to go get a home with foreclosure and they can get their money when the short sales are completed.

Watch Kevin Kauffman and Fred Weaver of Group 46:10, Short Sale Specialists, on the daily Short Sale Power Hour.

Short Sale Power Hour is happy to welcome Trent Chapman, Short Sale Genius, back to the episode. Trent has spent a great deal of time training realtors how to escalate. He offers a form letter on his website, theshortsalegenius.com, to offer people an exemplar of how to convey the escalation message to the bank. Essentially, it gives a universal script as to how you can justify that the short sale is better than foreclosure.

Alas, because too many people have merely copied and pasted the document, Matt Vernon may have a problem with it. For folks that do not know, Matt Vernon is a big shot at Bank of America. So, Trent will be getting in touch with Matt Vernon to discuss the escalation letter.

The idea behind the letter is that Trent needs to assist agents in knowing how to escalate. When you are addressing somebody that is higher up in the bank, you need to make the account as short as possible. We propose that you tell them the following. This is the house. It has been listed for 'x' days. We have a proposal. It's full market value. Here is the fair market value backed by these comps. Then you offer them the facts. With a short sale, you will get this much funds and if this forecloses, you will get this much funds. That is the general picture of the email.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Mesa - Foreclosure Short Sale Phoenix

One of the best and easiest ways to build a real estate business is to buy a property from a homeowner that is in foreclosure. Pre foreclosures are properties that are in the final stage just before they are taken back by the bank. The Pre- Foreclosure stage starts with the homeowner missing a mortgage payment and ending when the property is auctioned.

The foreclosure process may take a long time. Even after the owner misses several payments and the bank starts foreclosure proceedings, it can take several months before the home is actually repossessed and put up for auction or sale. The owner is still in charge of the property and has possession of it; however he/she knows that if payments are not made soon, the bank will repossess the home.

Using the pre-foreclosure process to one's advantage is a wise idea because these home owners are the most motivated types of sellers: they have a true deadline. Other sellers will say they are motivated or would like to move on, however none of them have a deadline that they are not in complete control of. In this case, the bank is in control of setting the timeline, and usually the bank is unwilling to adjust the deadline. Because of this forced deadline, the homeowner needs to make a decision before the bank makes the decision for them, and they lose everything.

In addition to having the most motivated types of sellers, the pre-foreclosure process has the most motivated types of lenders. These lenders do not want to keep the property; they simply do not want to lose their money. However, in many cases the lenders are willing to take less than what the homeowner owed simply to get rid of the bad loan. This type of sale is called a short sale, and it is a valuable technique to understand in the pre-foreclosure process.

The pre-foreclosure area of real estate is has great potential for profit. It is important to recognize what stage the market is in and which strategy to apply. Applying the correct strategy at the proper time will produce massive profits.

Foreclosurelists

Aiden Win

Article Directory: EzineArticles http://ezinearticles.com

The current administration recently rolled out a federally funded program called the foreclosure prevention program. The foreclosure prevention program could potentially help millions of Americans who are struggling to pay their mortgages.
The economic adversity in Chandler, Arizona that we are currently facing has caused the loss of thousands of jobs each month. This uptick in unemployment is one of the greatest reasons for the foreclosure prevention program.
The drastic need for a foreclosure prevention program also came to fruition because of the crash of the housing market and property values. With property values being just a fraction of the loan values, foreclosure prevention is needed now more than ever.
The foreclosure prevention program costs several billion dollars. Foreclosure prevention in the form of the government program is aimed at helping about nine million property owners and is effective until 2012. This foreclosure prevention program allows home buyers to adjust the terms of their mortgage, but they are only allowed to do it once.
The first step in the success of this foreclosure prevention program is to get the home owners mortgage payment to be less than 30 percent of their income. This foreclosure prevention technique is much like a loan modification that you would do with the bank. Basically, it is foreclosure prevention because it makes the terms of your mortgage payment comfortable for you and acceptable for the bank. There are several criteria to qualify for the foreclosure prevention program. See if you qualify based on the list below....
In order to quality, the home owner must have the following.
- Obtained your mortgage before January 1, 2009.
- mortgage that is less than $729,500
- provide tax returns and pay stubbs
- Sign a statement of hardship
So long as the mortgage interest rate stays high enough, the lenders will follow a specific plan to help you lower the total payments considerably for you. Following that, the administration will do its thing with the foreclosure prevention program and your payment will be lowered to thirty percent of your income or less, which will make it affordable for you to pay.
That interested rate mentioned above is guaranteed for a five year term in Chandler, AZ. After the five years are up, the rate can rise by one percent, which won't be much. It will rise every year until it reaches either the current rate or the previous rate that you had, which ever comes first. Lenders are going to receive money for each of the loans that they refinance through the foreclosure prevention program.
If this government program seems complicated for you, you might want to contact a real estate expert who can give you advice in foreclosure prevention. However, you may also consider a short sale. It can provide greater relief for some than this complicated government program.

Today, Kevin and Fred have decided to cover a subject that they have never covered in the past. Moreover, they haven't ever discussed it in one of their Crush It lessons. The subject is post short sale approval problems. Basically, you previously have an approval from the bank and problems occur. How do you cope with them? What is truly occuring out there?

With a deal that closed yesterday, our escrow representative was looking to get the closing HUD approval from our negotiator at Citi. It was closing today. The negotiator denied the closing HUD despite the fact that all of the terms were met. The most horrible part was that the negotiator wasn't willing to verbalize in plain english to clarify that the HUD had to look a particular way. It is important to note that just because the deal is approved, it doesn't mean it is completed.

Recognize that your approval note at most banks says that they have to approve of the final HUD. Because the approval letters don't identify what they are paying and what they are not paying, you might not know if they will grant it.

We had one more post approval difficulty recently, with an approval from the coordinator. We scheduled the closing. About a week into the closing, we got a telephone call from another negotiator that introduced themselves as the the new negotiator for this folder. She requested a number of documents so that she could get the folder accepted. When we told her that we previously had the folder accepted, she let us know that that approval was no longer applicable because they never got the folder accepted from the backer.

This is the sort of stuff that is occuring out there that you will not here in a regular short sale education session. The point is that there are post approval problems and you are going to have to deal with them if you desire to be successful in this business

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Tempe - Avoid Foreclosure Arizona

As soon as you have cleared the first hurdle with the negotiator headache, the second major concern in a bank short sale needs to be addressed. Buyer impatience and their general lack of knowledge in the bank short sale process can lead to much undue stress. This problem can be compounded if the buyer is a first timer that is eager to get into a new home. The purchaser can quickly be turned off if they are not on good communication terms with the real estate agent regarding a bank short sale. Often times, even though the Real Estate agent in Tempe, AZ has completed all of the bank short sale paperwork and sent it to the bank, the transactions will still take as many as two additional weeks to complete. Then the bank short sale paperwork will need to be passed on to those pesky negotiators.
Asking for an excited buyer to be patience is a troublesome thing to do. This is especially challenging in current times as the number of bank short sale properties on the market today is ever increasing. Additionally, today's society takes a "grass is greener" approach to most things. So, they will always consider a better deal may wait around the corner or better service can be had from another agent in a bank short sale. The patience of a potential buyer is a huge hurdle in the bank short sale and should be handled before the buyers even view the properties.
Just for frame of reference, here is an example. Last month, I was in the midst of working through a bank short sale in Tempe, Arizona that involved a property which was potentially going to sell for eighty thousand dollars less than comparable homes in the area. However, because it was a bank short sale, there was going to be a waiting period of as long as three weeks. The buyer was excited about the potential of the home for her and was overjoyed that is was in a condition that it could be immediately moved into without any changes or renovations. However, the buyer was under the impression that they should not have to wait for more than two days for a response, completely ignorant of the bank short sale process.
I decided to take a gamble and tell the buyer that this bank short sale process wasn't necessarily for her because the bank does not care if you NEED a response in two days. The bank could care less about your dream home. However, if she was wiling to understand the bank short sale process and allow me to devote the time and energy to it, she would eventually get the home she desired. After some normal waiting in the bank short sale process, she was able to purchase the home and will close on it in a few weeks. Using a honest and direct approach to the buyer regarding the bank short sale process helped her understand the need for patience in completing a bank short sale.

We are going to speak about mindset again today. We have noticed a trend on our favorite social media website, facebook. Coincidentally, facebook just surpassed 500 million users. So, that is a fantastic lead generation technique on mindset Monday. Just ask the 23 customers that we received through facebook and closed on.

The idea that we would like to speak about is that we have noticed a lot of realtors on facebook that are complaining. We are not mad at them because many of them are our friends. Nevertheless, we see a lot of the status updates about which bank you can't stand. Also, there are a lot of status updates asking if anyone has a good contact at this specific bank or that specific bank. In light of these facebook postings, we would like to take people back to the January 2nd installment.

The idea that was discussed on that installment was to do something atypical. This isn't an installment to get mad at realtors. The objective is to not get trapped in a rut doing the same thing all of the time and hoping for atypical results. You will have to do something atypical.

One of the things that we suggest to realtors is to speak to someone atypical at the bank. If you are wondering how to do that, try jigsaw.com. We get emails all day for contact details. It is important to note that we will never respond with contact information, but we will typically respond with a suggestion to try jigsaw.com

Just one illustration of doing something atypical, Fred couldn't get a bank worker to stop talking today so he just started pushing buttons on the telephone. It most likely wasn't the most adult thing to do. However, he was doing something atypical. If what you have been doing isn't getting you the results you desire, try something atypical. The worst thing that can ensue is you will still not get the results you desire.

If you have questions, get your Short Sale questions answered by Short Sale Specialists.

Watch this and more short sale videos by Kevin and Fred at Short Sale Power Hour

Also, follow Group 46:10 on their blog at Tempe - Mortgage Short Sale Arizona

The last option that a home owner in Mesa, Arizona wants to face when they need to give up their house is foreclosure. Many house owners that can not keep up with their payments feel that foreclosure is the only option available to them. They stop talking to the mortgage company and leave the house, or sometimes stay until they are forcibly removed from the premises. Little did they know that foreclosure is not the only option available. There are many different avenues to take in order to stop foreclosure sale.
Mortgage lenders in Mesa, AZ would prefer that you give the house back, so that they do not have to take it. Taking the house from you costs them extra money. So, while they won't help you stop foreclosure sale, they would really prefer that the foreclosure process never gets started. The mortgage company would prefer something better than selling the house at foreclosure sale, giving them only a fraction of the houses value. So, in some respects, the mortgage company wants to stop foreclosure sale before you are ever even considering it. Occasionally, the mortgage company will choose to consider a deed in lieu, but there are better ways to stop foreclosure sale. Some of those ways are not widely known.
The short sale is a great option for people that want to stop foreclosure sale. While it is not good that you are considering a short sale or need to stop foreclosure sale of your house, it is THE BEST OPTION for someone that wants to stop foreclosure sale. Essentially, you are already in a bad situation and the short sale is the best option available to you to stop foreclosure sale. Your chances of buying a home in the future are much greater if you utilize the short sale. This is true for several reasons. First, the short sale does very little or nothing at all to damage your credit. Secondly, most mortgage companies will not want to loan money to someone that has had a house foreclosed previously within the last five to seven years. That is why it is so important to stop foreclosure sale. With a short sale, you will have the opportunity to purchase another home based on the same criteria that you purchased your first home, namely you income and your credit score. This puts you in a great position for the future if you intend to buy a home again.
Basically, a short sale works with two scenarios. The home owner, who can not pay their mortgage anymore, finds a buyer of for the home. The purchase price is not enough to cover paying off the existing mortgage. However, because the bank is going to lose money on the home, they will take the offer because they get more from the short sale than they would if they had to foreclose on the home. The lender reduces the balance of your mortgage to pay it off with the sale of the home.