Peter DeLuca Tucson Real Estate

Short Sales

Let’s get real! Now more than ever, Peter can help solve his client’s problems and understands the facts about Foreclosures, Short Sales and REO Properties in Tucson, Marana, Vail, Sahuarita and Oro Valley.

Definition of a Short Sale… A Short sale occurs when all of the following are in place at the same time:

  • The Seller owes more money on a house than it is worth under current market conditions.
  • For one reason or another a Seller must sell the property.
  • The Seller does not have the finances available to bring money to closing to pay off the mortgage at the time of the sale.
  • The Seller’s lender or lenders agree to accept less than what is owed on the mortgage.
  • The property is marketed through a local, qualified  Real Estate Agent who is familiar with the intricacies of dealing with the lender on the seller’s behalf.
  • A qualified buyer presents an offer and the lender or lenders agree to accept the offer.
  • Escrow closes within a certain amount of time dictated by the Lender(s)

Why the SHORT in short sale?     A short sale is named for the fact that the bank in the transaction is agreeing to take an amount that is “short” the full amount owed.   This seems to be the only part of a short sale that is short.    The short sale offers a unique opportunity for the right buyer. The question is: Are you that buyer?

Are you patient?

Short sales take a lot of time and involve a degree of uncertainty for an extended amount of time. Due to the fact that the bank is accepting less money than what the borrower owes, they are involved in the decision making process, many times much more than the sellers themselves. Once you put in an offer on a short sale, it can take several weeks to even receive an answer from the bank.

Why does the process take so long?

As you can imagine, many banks are inundated with requests for short sales. Most are dealing with a limited staff who are typically handling in excess of 100 files per person. Often times it can take a week just to get the short sale package (including your offer) to the correct person. Once the person receives the file, he/she will order an appraisal or BPO (Brokers Price Opinion) on the property in question. The appraiser will make an appointment with the seller’s Agent to view the property. Once the BPO or appraisal is returned to the bank, the negotiator reviews the asking price versus the current “market value”. They will then either accept your offer or counter it.

Making Counter Offers

After the bank makes a decision, they may counter your offer. You then have a choice to make. You can accept their counter-offer and close the deal or you can counter their offer. If you counter their offer, they may take even more time to consider it, but it usually isn’t as long as the initial waiting period. Still, those buyers who have a time limitation on buying the home may end up taking a counter-offer higher than they originally would have been comfortable with simply for the sake of expediency. If you are not in a hurry you have the opportunity to get a better deal by extending negotiations.

Why is a Short Sale such a good deal for Buyers?

Simply put, you can get a great deal and over the next few years see very good gains in your equity. Since the bank is looking at the possibility of having to foreclose, owing the property, and then trying to sell it at current market value, they are sometimes willing to go somewhat below market value as a way of keeping their losses to a minimum. Getting a home below market value is always a good deal, of course, but considering that over the next year or so the market is expected to become much more stable, now could be an ideal investment opportunity. You don’t have to be an investor to take advantage of the situation, though. Even a primary residence can make a good investment. If you have the time and a savvy agent to represent you, buying a short sale can be a tremendous opportunity in today’s Tucson market.

Short Sales in Tucson are on the rise with no end in sight. Peter is familiar with the offer and acceptance process, owner requirements to lender, agent obligations to buyer, seller and lender and how to get lender approval in the shortest time.


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