Real Estate “Short Sales” have been getting some attention in the news lately. But just what is a “Short Sale?”
Simply put, a short sale is the sale of a mortgaged property that results in the mortgage holder receiving less that what is owed to them.  The mortgage holder is “shorted” part of the mortgage balance.

In order to do a short sale, the bank or mortgage company must agree to it. But why would they agree to take less money?

The answer; banks don’t like owning, maintaining or selling houses.  It interferes with their main business of lending, managing and investing money.

If you find yourself in the position of having to sell your house and you don’t have the equity in your house or cash reserves to pay the mortgage off in full, a short sale may help you out.

Here’s how to go about doing a short sale, step by step:
1. Determine the current market value of your home.
2. Add up all of the selling costs you will need to pay.
3. Find out what the payoff amount is on your current loan(s).
4. Do the math, subtract the loan balance &  the selling costs from the market value.
5. Call your lender and ask for the “loss mitigation” department or a supervisor. Explain your situation to them.
6. Ask them what their procedures are for a short sale.  If they are willing to work with you, get all the forms and requirements and see if you can work out an agreement.  Be prepared to convince them your case deserves consideration. They will probably want a financial statement with all your bills and assets shown.  They may even want to see your household budget.  Don’t take it personally, it’s just business.
7. Sell the house. The bank will probably be involved with most of the contracts and offers.

The biggest mistake made by home owners in financial trouble is not getting in touch with their lender.  Almost all lenders would rather work things out with you than take back your home. Especially in today's market.

Questions? Comments?  Give us a call or email.  We love to talk real estate!

We want to ensure that our Sellers get the most money for their home. So to help boost the curb appeal of their home we have found 11 simple ways a seller can spruce up the exterior prior to listing the home.

1. Paint or stain your front door. You probably won't even have to take it off the hinges. Installing a metal kick plate is another inexpensive way to freshen your entrance - it will cover years of wear.

2. Polish door hardware. Consider replacing the hardware if it's really worn or flaking. Don't forget the doorbell and lighting fixtures.

3. Replace worn welcome mats. A new welcome mat in a cheery complementary color can boost the front entrance welcome factor.

4. Install outdoor lighting. Consider solar garden lights to line a walkway, or a bright new porch light. This will make your home look more inviting in the evening when most buyers have the time to drive by.

5. Kill mold and mildew. Use a pressure washer to easily blast the siding, roof, deck and driveway clean.

6. Mow the lawn. Trim around flowerbeds and other stationary objects. Make sure your lawnmower's blades are sharp for a clean cut.

7. Get rid of weeds. Replace them with blooming flowers and add new bark or gravel for a fresh look.

8. Trim shrubs and tree branches. Cutting overgrown shrubs can open up your home's exterior. Be sure branches aren't creeping onto the roof. Show off appealing architectural elements by trimming around columns and windows.

9. Add a hanging flower basket. Install a stylish but discreet hook on your front porch and add an inexpensive hanging plant.

10. Clean gutters. If the downspout is badly damaged, consider replacing it with a decorative rain chain, which allows water to run down ornamental funnels into the ground drain.

11. Clean windows. Use an industrial cleaner to make your windows sparkle from across the street. Don't forget to wash the screens.

You won't get a second chance to make a first impression to potential Buyers.  If a seller would spend just one weekend to prepare the home they could expect a big pay off.  A great first impression can mean a difference between a quick sale versus having the hoe sit on the market for months.

Don't count on it!  Approximately 40% of all homes listed for sale in the Valley of the Sun (Greater Phoenix) MLS are currently vacant!   This is very troubling since most sellers think that their home is covered by the home insurance policy that they had in place when they were living there. 

All insurance property policies have a requirement that the dwelling they are insuring not be vacant for any greater than 30, 60, or 90 days at any time (depending on the policy) during the policy term.  If it is vacant longer than whatever number of days are specified, and becomes damaged during those later days, in many instances the insurance company will deny the claim because you failed to comply with the insuring requirements.

Sometimes you can get a “Vacancy Permit” which basically extends very basic coverages for your property for an additional short period of time to allow you time to either move back into the property yourself or find a renter.

So to be on the safe side we recommend that you call your insurance agent immediately and talk with them regarding your policy.

Hope this helps some of you sellers out there.

Selling Your Home?  Here are 11 ways to easily boost your Curb Appeal in a weekend.  Check out this article.

http://www.homepages.com/article.aspx?ArticleID=182b7d7a-d61e-4eed-88fc-ef50013ace17

Feel Free to call us if you have any questions.

Randy & Paul