Short sales are becoming an increasingly larger share of the real estate market here in the Scottsdale and Tempe areas, with short sale closings accounting for 21% of all closings in April of 2010, up from 9% in April of last year. In 2010 were 34 successful short sales closed this April with sales prices from $600,000-1.65m. There is a noticeable trend that more luxury homes and real estate are entering the distressed market.
The Scottsdale and Phoenix Luxury real estate market has been affected by higher interest rates on jumbo loans, limited loan availability, and increasingly strict requirements in qualifying for loans. According to the National Association of Realtors, inventory on homes priced above $750,000 has risen 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 economy, lack of opportunities to refinance, the growing inventory of luxury homes, and fewer qualified buyers has created a titanic complication for luxury homeowners who need to sell..... but can not.
Who do these luxury real estate owners facing these issues 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 servicers are willing to follow similar processes to lessen losses. Historically a short sale will cost a bank an average of $40,000 to foreclose rather than short sale, which includes attorney fees, depreciation, and carrying costs. This FREE help is available to residents of Scottsdale and Phoenix facing foreclosure.
It is critical for homeowners to understand their options, and should contact a professional who is educated with the foreclosure process, as well as 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 real estate market has been affected by higher interest rates on jumbo loans, limited loan availability, and increasingly strict requirements in qualifying for loans. According to the National Association of Realtors, inventory on homes priced above $750,000 has risen 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 economy, lack of opportunities to refinance, the growing inventory of luxury homes, and fewer qualified buyers has created a titanic complication for luxury homeowners who need to sell..... but can not.
Who do these luxury real estate owners facing these issues 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 servicers are willing to follow similar processes to lessen losses. Historically a short sale will cost a bank an average of $40,000 to foreclose rather than short sale, which includes attorney fees, depreciation, and carrying costs. This FREE help is available to residents of Scottsdale and Phoenix facing foreclosure.
It is critical for homeowners to understand their options, and should contact a professional who is educated with the foreclosure process, as well as 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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