Short sales are becoming an increasingly larger share of the real estate market here in the Scottsdale and Mesa areas, with short sale closings accounting for 21% of all closings in April of 2010, up from 9% in April of last year. There were 34 successful short sales closed this April with price ranges from $600,000-1.65m. There is a clear trend that more luxury homes and real estate are entering the distressed market.
The Scottsdale and Phoenix Luxury property market has been affected by higher interest rates on jumbo loans, limited loan availability, and increasingly strict requirements in qualifying for mortgages. According to the National Association of Realtors, inventory on homes priced above $750,000 has climbed from an 18 months supply in 2007 to a 40-month supply in 2009. NAR also revealed that the foreclosure rate on jumbo loans was nearly twice the rate on conforming loans ($417,000 and under).
The lackluster global economy, lack of opportunities to refinance, the growing supply of luxury real estate, and fewer qualified buyers has created a gigantic complication for luxury homeowners who need to sell..... but can not.
Who do these luxury property owners facing these situations turn to?
There are government programs to help homeowners in distress including the HAMP for mortgage modifications, and HAFA for short sales. Property Owners with higher loan debt may not qualify for these programs, but most banks are willing to follow similar step to lighten their losses. Traditionally a short sale will cost a bank an average of $40,000 to foreclose opposed to short sale, which includes attorney fees, depreciation, and carrying costs. This FREE program is available to residents of Scottsdale, Phoenix, and Gilbert areas facing foreclosure.
It is critical for homeowners to understand their choices, and should contact a real estate agent who is educated with the foreclosure process, government programs, anti-deficiency laws, and short sales. I have created a website with FREE information for consumers on alternatives to foreclosure, and am always here to answer any questions or concerns.
The Scottsdale and Phoenix Luxury property market has been affected by higher interest rates on jumbo loans, limited loan availability, and increasingly strict requirements in qualifying for mortgages. According to the National Association of Realtors, inventory on homes priced above $750,000 has climbed from an 18 months supply in 2007 to a 40-month supply in 2009. NAR also revealed that the foreclosure rate on jumbo loans was nearly twice the rate on conforming loans ($417,000 and under).
The lackluster global economy, lack of opportunities to refinance, the growing supply of luxury real estate, and fewer qualified buyers has created a gigantic complication for luxury homeowners who need to sell..... but can not.
Who do these luxury property owners facing these situations turn to?
There are government programs to help homeowners in distress including the HAMP for mortgage modifications, and HAFA for short sales. Property Owners with higher loan debt may not qualify for these programs, but most banks are willing to follow similar step to lighten their losses. Traditionally a short sale will cost a bank an average of $40,000 to foreclose opposed to short sale, which includes attorney fees, depreciation, and carrying costs. This FREE program is available to residents of Scottsdale, Phoenix, and Gilbert areas facing foreclosure.
It is critical for homeowners to understand their choices, and should contact a real estate agent who is educated with the foreclosure process, government programs, anti-deficiency laws, and short sales. I have created a website with FREE information for consumers on alternatives to foreclosure, and am always here to answer any questions or concerns.
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