Short sales are becoming an increasingly larger portion of the market here in the Scottsdale and Chandler 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 sales prices from $600,000-1.65m. There is a growing trend that more luxury homes and real estate are entering the distressed market.
The Scottsdale and Phoenix Luxury home market has been affected by rising interest rates on jumbo loans, limited loan availability, and increasingly tight requirements in qualifying for mortgages. According to the National Association of Realtors, inventory on homes priced above $750,000 has climbed from 18 months supply in 2007 to a 40-month supply in 2009. NAR also reported that the foreclosure rate on jumbo loans was nearly double the rate on conforming loans ($417,000 and under).
The weak world economy, lack of opportunities to refinance, the increasing supply of luxury homes, and fewer qualified buyers has created a massive burden for luxury propertyowners who need to sell..... but aren't able to.
Where do luxury homeowners facing these problems turn to?
There are government programs to help homeowners in need including the HAMP for loan modifications, and HAFA for short sales. Homeowners with higher loan debt may not qualify for these programs, but most servicers are willing to follow similar processes to minimize losses. Typically a short sale will cost a bank an average of $40,000 to foreclose rather than short sale, which includes legal fees, depreciation, and carrying costs. This FREE help is available to residents of Scottsdale and Phoenix facing foreclosure.
It is essential for consumers to know their choices, and should contact a real estate professional who is educated with the foreclosure process, government programs, anti-deficiency laws, and short sales. I have created a website with FREE information for homeowners on alternatives to losing your property to foreclosure, and am always here to answer any questions or concerns.
The Scottsdale and Phoenix Luxury home market has been affected by rising interest rates on jumbo loans, limited loan availability, and increasingly tight requirements in qualifying for mortgages. According to the National Association of Realtors, inventory on homes priced above $750,000 has climbed from 18 months supply in 2007 to a 40-month supply in 2009. NAR also reported that the foreclosure rate on jumbo loans was nearly double the rate on conforming loans ($417,000 and under).
The weak world economy, lack of opportunities to refinance, the increasing supply of luxury homes, and fewer qualified buyers has created a massive burden for luxury propertyowners who need to sell..... but aren't able to.
Where do luxury homeowners facing these problems turn to?
There are government programs to help homeowners in need including the HAMP for loan modifications, and HAFA for short sales. Homeowners with higher loan debt may not qualify for these programs, but most servicers are willing to follow similar processes to minimize losses. Typically a short sale will cost a bank an average of $40,000 to foreclose rather than short sale, which includes legal fees, depreciation, and carrying costs. This FREE help is available to residents of Scottsdale and Phoenix facing foreclosure.
It is essential for consumers to know their choices, and should contact a real estate professional who is educated with the foreclosure process, government programs, anti-deficiency laws, and short sales. I have created a website with FREE information for homeowners on alternatives to losing your property to foreclosure, and am always here to answer any questions or concerns.
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