Request Short Sale Advisory Info
Selling your home or investment property today isn't what it was just a few short years ago. Currently in Arizona 57% of property sold are an REO (Real estate Owned or more commonly known as a foreclosure) or a Short Sale. A short sale is when you sell a property for less than what you owe. This requires negotiations with your bank, a meeting with your tax preparer and maybe even an attorney. While Short Sales are becoming more and more common there are some warning signs that you should watch out for. Did you know that with the increase in Short Sales there has been an increase in Mortgage Fraud and an increase in legal issues? The 5 biggest issues to be aware of are as follows:
1. Beware of 'Flopping'. Flopping is when you and your Real estate agent have a buyer who is purchasing the property for a price lower than it is worth while at the same time the agent and buyer have a second buyer lined up to purchase it at the same time or immediately after for a higher price.
2. Beware of Reverse staging. This is when the agent prepares a BPO (Broker Price Opinion) that is low by inflating the repair estimates or making the property look more distressed than it really is.
3. Beware of creative proceeds on the HUD. Skimming the net proceeds is illegal.
4. Beware of maneuvering family and loved ones in an effort to keep the property. Parties are now obligated to sign what is called an 'arms length transaction'. And attest that the sale is truly arms length.
5. Beware the untrained Real Estate Professional. Short Sales require special training. The most significant legal issue facing sellers and real estate professionals today are short sale disputes. The major case is insufficient training.
Interested in learning more? Fill out the information below and we will send you the Arizona Association of Realtors 'Short Sale Advisory'.
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