Answering Some Common Distressed Real Estate Questions

We are here to answer some questions about short sales, how they work, the benefits they offer, and how long you have to wait to buy again.

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We are back to answer a few questions about distressed home sales. A lot of people went through foreclosures and short sales during the recession, and a lot of them are now curious about when they can get back into the market. Others bought during the recession and haven’t quite been able to stay above water, so they want to short sell their homes. Let’s discuss the wait period first. People have been asking, “When can I buy a home again?”

If you want to buy a home with conventional financing after going through a short sale, you will have to wait four years. After a foreclosure, you would have to wait seven years. This loan has a limit of $417,000. If you want to buy with an FHA loan, which has a limit of $271,050, you’ll only have to wait three years. This goes for both short sales and foreclosures.

The second question I’ve been getting is “How do I short sell my house?” Unfortunately, this question is becoming all too common. The market is still about 20% off from where it was at the peak in 2007, and if you’re underwater and can’t sell traditionally, a short sale can be a great option.
The Mortgage Forgiveness Debt Relief Act is still in play.
The best thing about doing a short sale right now is that the Mortgage Forgiveness Debt Relief Act is still in play through the end of 2016. Congress could extend this out, but as of now, they have not. You still have several months to take advantage of this act through a short sale, which will forgive you from paying taxes on an owner-occupied residence that you want to short sell.

If you have any questions for me at all, don’t hesitate to reach out. I can answer all your real estate questions and point you in the direction of an experienced loan officer to answer any mortgage-related inquiries. I look forward to hearing from you soon!

Announcing the $300 Southwest Gift Card Drawing Winner

We're excited to announce the winner of the $300 Southwest gift card!

We've been calling around for about three months, adding our wonderful clients to the drawing. We wanted to once again say thanks for doing business with our real estate team.

And without further ado, the lucky winner is Denise Carroll!

Thanks to everyone for participating! If you'd like to be entered twice for our next prize drawing, send a referral our way.

We hope to hear from you soon!

Combatting Arizona’s Loan Contingency Clause

Let’s say you are selling your home. It’s been under contract, you’re three days away from closing, and you’re all ready and packed up. Suddenly, you receive that dreaded call that the buyer is walking away. What’s more, they’re taking their earnest money with them, which can be done in the state of Arizona.

This is a nightmare scenario that happens to people in this state when they don’t have the right representation looking out for their best interests. In this state, many agents don’t even know that this clause exists. We always consult with our clients about this clause. In a counter-offer situation, we also counter that verbiage of the clause.

In Arizona, some agents don’t even know that this clause exists.

We like to bump up the timeframe that allows them to back out of the deal prior to close of escrow from three days to 10 or even 14 days. That way, both parties know that there’s a hard stop, so if the buyer isn’t able to obtain loan approval 10 (or 14) days before close of escrow, their earnest money is not refundable.

We always aim to put your best interests at the forefront. If you have any questions about loan contingencies or any questions at all about real estate, give us a call or send us an email. We would be happy to help you!