Short Sale Basics Part Five: The Gap and Closing the Gap

On December 28, 2011 By

(This is the final article of a 5 part series entitled Short Sale Basics)

The Gap

If the net payoff on a given HUD-1 for the sale of a home does not meet the standards set by the investor as a percentage of the BPO (Broker Price Opinion) then there will be a gap.  For example, [...]

Continue Reading →

Short Sale Basics Part Four: The BPO

On December 24, 2011 By

(This is part 4 of 5 of the short series entitled Short Sale Basics)

The BPO

The BPO is that 3rd party opinion of value.  It can make or break the deal because banks look at this number as the letter of the law when it comes to your home’s value during a short sale negotiation. [...]

Continue Reading →

Short Sale Basics Part Three: The Net Payoff

On December 20, 2011 By

(This is part 3 of 5 of the short series entitled Short Sale Basics)

The Net Payoff

Let’s assume that the house you’re about to sell receives an offer of $100,000 and you owe $200,000.  I can’t stress this enough.  For the purposes of obtaining an approval from the lender, the deficiency DOES NOT MATTER.  The [...]

Continue Reading →

Short Sale Basics Part Two: The Offer

On December 16, 2011 By

(This is part 2 of 5 of the short series entitled Short Sale Basics)

The Offer

When a house goes on the market and someone makes an offer, if that offer is less than the seller owes on their mortgage, then you have a problem.  You have a short sale.  You are going to need to [...]

Continue Reading →

Short Sale Basics Part One: Market Value

On December 13, 2011 By

(This is part 1 of 5 of the short series entitled Short Sale Basics)

At its core, a short sale is a standard real estate transaction.  A house is listed for sale at a price comparable to the surrounding market activity, including sold properties, competing properties for sale, and properties under contract.  A buyer makes [...]

Continue Reading →

Inspections vs. Appraisals

On October 31, 2011 By

In response to an article posted on DSNews.com entitled “Zillow: Prospective Home Buyers Overestimate Home Value Appreciation“ where the author writes about buyers being confused about the difference between inspections and appraisals, I thought I’d post a simple explanation should you be one of [...]

Continue Reading →

Special Listing Conditions

On July 21, 2011 By

Not every house for sale is a clean offer.  Sometimes there are special conditions on the property that will affect the transaction timeline.  One example of this would be “Short Sale Approval Required” or as our Arizona MLS abbreviates it, “Short Sale Aprvl Req.”

Here is a quick list of the Special Listing Conditions that [...]

Continue Reading →
Auction

We Don’t Do Foreclosure In Arizona

On April 14, 2011 By

There’s a misconception amongst the Arizona communities that we have “foreclosures.” Even to this date, I have referred to the loss of a home in Arizona as the foreclosure process. I have technically been incorrect, even though we all know what it means.

In Arizona, we also don’t have Mortgages. We have Deeds of Trust, [...]

Continue Reading →