Buying a Short Sale in Arizona

Arizona Short Sale Strategy

We all know the inaccuracy of the term “Short Sale.”  They are in no way “short.”  Well, that is not entirely true.  While Arizona buyer’s and sellers involved in a short sale may wait for months for a short sale to be completed, the time that a bank gives a buyer to close once they approve the short sale can be SHORT!  Buyers faced with this situation need a Phoenix Arizona Mortgage Lender that can help them close FAST once their short sale offer has been approved.

Typical Arizona Short Sale Scenario

A Phoenix area home buyer puts an offer in on a short sale.  6 months later (after everyone has been lulled to sleep waiting for bank approval) the selling bank comes to life and approves the buyer’s short sale offer.  They then say “buyer must close in 14 days.”  The buyer’s Arizona mortgage lender must perform very quickly and effectively in order to squeeze out a quick mortgage approval and closing.  The sad truth is that many large banks are taking 50+ days to close an Arizona home loan.

How Arizona Home-Buyers Protect Themselves?

A simple and proactive mortgage strategy with your Arizona mortgage professional will greatly increase your odds of closing on time and massively reduce the stress put on you!  The strategy is simple – your loan officer needs to take your file all the way through underwriting ahead of time – before your short sale offer is ever accepted.

By completing your actual underwriting approval (completely) your mortgage lender will eliminate 70% of the work ahead of time – before your short sale is fully approved by the selling bank.  Then, once the selling bank approves your short sale offer and says you must close tomorrow (or close to it) you are not starting at square one.  If your Arizona mortgage lender has already completed your mortgage approval all that is left to do is order an appraisal and possibly update income and asset documentation for the underwriter.

Updating an Existing Home Loan Approval is Faster

Typically, the wait time for a initial approval submission with any Arizona area mortgage company is 2 to 3 times longer than what is called a “Re-sub”  – the updating of an existing approval.  By cutting off 2+ days, it is much easier to meet demanding short sale approval closing times and not go past contractual close of escrow dates (which may cost buyer’s money – per Diem late fees can stack up quickly).

By Jeremy House

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