Scottsdale AZ Realtor Jen Wehner Is A Success In Luxury Real Estate Short Sales
By: Jennifer Wehner
Short sales are becoming an increasingly larger share of the landscape here in the Scottsdale, Fountain Hills, Paradise Valley 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 clear 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 tight requirements in qualifying for mortgages. According to the National Association of Realtors, inventory on real estate 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 sluggish economy, lack of opportunities to refinance, the growing inventory of luxury homes, and fewer qualified buyers has created a titanic problem for luxury homeowners who need to sell but can't.
Who do these luxury real estate owners facing these issues turn to?
There are government programs to help homeowners in need including the HAMP for loan modifications, and HAFA for short sales. Property Owners with higher loan balances may not qualify for these programs, but most servicers are willing to follow similar processes to dampen their 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 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 foreclosure, and am always here to answer any questions or concerns~ Call Jen at 480-748-6925
Article From Scottsdale Real Estate Agent