Urban Life

10 Short Sale Myths as Short Sales Gain Popularity in Phoenix

There was a fine article about short sales in the Scottsdale and Phoenix Arizona market today. Since we, The Urban Team, are considered short sale specialists we really liked some truths about short sales revealed. The bottom line, short sales in Scottsdale, Phoenix, Glendale, Peoria and other Arizona cities are much easier to do than in times past.

Below are the 10 Short Sale Myths talked about in the article. I would have linked directly to the article in the November 29, 2009 article in the Arizona Republic but I could not find it online, only in print.

MYTH 1:  You must be behind on your mortgage to qualify for a short sale.

There are many factors that determine qualification. Most experts say the letter of hardship and actual facts surrounding a homeowners hardship are most important. The AZ Republic article says you should talk with a real estate agent early in the game. We DO NOT agree with this. We believe you should talk with an attorney who specializes in distressed homeowner law including foreclosures and short sales. We have a link to several firms who specialize in this form of law on our Scottsdale and Greater Phoenix short sale site www.Short-Sale_Phoenix.com.  Just look for the legal help tab. Once you have talked with a legal expert and determined a short sale is right for you, then talk to a real estate agent who is expert in short sales.

MYTH 2:  Short sales rarely get approved.This was very true in 2008 and most of 2009. Many factors made it hard. However, with proper preparation, good legal counsel and a savvy short sale Realtor, the percentages have gone way up. Many agents are reporting success rates above 80%. 

MYTH 3:  Banks would rather foreclose than approve a short sale.

It's not that the bank would rather foreclose than approve a short sale, it' is simply that foreclosures are easier. Laws are in place that make a foreclosure relatively simple whereas short sales take a lot more time and infrastructure. However, the investors who back the loans are finding it more profitable to do a short sale. New data suggests the investor can end up with as much as 35% more by a short sale than a foreclosure. In addition, the problems with vacant properties is alleviated in most cases. 

MYTH 4:  There's on time to negotiate a short sale.

Many lenders are postponing trustee sales these days allowing more time to negotiate a short sale. Again, this has to do with them being motivated by increased profits and reduced liability. We've seen banks respond very quickly when asked to postpone a foreclosure and consider a short sale.

MYTH 5:  It's fine to submit simultaneous offers on short sale properties.

True, it is legal to do this but most banks prefer to look at one good offer. Multiple offers tend to clog the system and make the process more difficult. In addition, if the buyer knows they have the only offer on the table they are more apt to wait out the process.

MYTH 6:  A short sale is a fire sale.

Definitely not true. The banks are looking at net proceeds of the short sale verses what they would likely make from a foreclosure. In general, we see successful short sales selling at or near market value. This is good for both the bank and the neighborhood where the home is located; A win/win. Low, fire sale offer are generally declined.

MYTH 7:  Anyone can help negotiate a short sale.

The article in the Arizona Republic says to work with an agent with short sale experience to negotiate with your bank. We STRONGLY disagree with this approach. There are many legal ramifications that are best handled by an attorney. Our role as short sale real estate agents is to market and sell the home while working with the homeowner and his/her legal counsel. The actual negotiation of your existing contract, mortgage, is a matter of law, and best handled by someone with legal expertise. Please note: Most attorneys do not have short sale skills and knowledge so finding one who does is very important to your success.

MYTH 8:  A short sale is not worth the hassle.

In many cases, a short sale can have less damaging effect on your credit. In addition, we've found that many homeowners feel a sense of comfort knowing they didn't just walk away from their problems, they participated in creating a successful outcome. Many have said they were glad to meet and know the person who would end up with the home rather than see it go to the bank and possibly get vandalized.

MYTH 9:  Short sales are as financially damaging as foreclosures.

This is a case by case situation best determined by a tax attorney or CPA. The good news is that many banks do not report a short sale in the same manner as a foreclosure and there is less damage to your credit history and less effect on employment background checks. The AZ Republic article says that Fannie Mae back loans allow eligibility for a new loan in as little as 2 years if you have a short sale verses 5 years for a foreclosure.

MYTH 10:   Short sale negotiations are adversarial.

We have not found this to be true. The greatest problem is the person representing the lender/investor is often buried in a sea of paperwork. If your short sale package and purchase offer are professionally handled it helps a lot. Also, being cordial rather than defensive is important. If you tick off the bank's representative they are likely to set your file aside and move on to a less confrontational customer. We've found that most are decent people trying to do a very hard job.

Well... that sums up our take on the 10 myths about short sales. If you want more information, a set by step guide, referalls to legal counsel and more, our short sale web site has pages of information and answers. Just go to www.Short-Sale-Phoenix.com.

Best to you,

Gene Urban & Ron Urban
The Urban Team at Realty Executives
602-234-5777

we're brothers, you'll feel like family

Alvarado Historic District in Downtown Phoenix, AZ

Today we are continuing our exploration of the historic districts in downtown and uptown Phoenix, Arizona with a look at the Alvarado Historic District near Central and Monte Vista in downtown Phoenix.

Before we talk about Alvarado, let's talk a little bit about owning a historic home. Clearly there are advantages and disadvantages to owning a -truly historic home.

The advantages are many:

• You own a piece of our city's heritage and history.
• Your home is likely to be quite unique.
• Historic neighborhoods tend to be chummy and a place where homeowners take a lot of pride and often know each other.
• You can expect lower property taxes and access to special financial programs offered by the City of Phoenix. You can learn more about these at the Historic Preservation web site.
• Many of the neighborhoods are walking distance to the urban core, light rail and the many delights downtown and uptown Phoenix offers.
• Your friends will think you are cool... well maybe that's a value judgment because I love historic homes. 

We will discuss some of the disadvantages in another post since I am sure you want to learn more about the Alvarado Historic District now. 

As you can see from the map, the Alvarado historic district sits south of Oak and east of Central Avenue behind the Heard Museum. There is a reason it is close to the museum since its its original residents were Dwight & Maie Heard. The Heard Family built a 6000 sq.ft. home in 1909 they called Casa Blanca. Later he bought up a bit of land he then subdivided.

Today, Alvarado is known for it large lots, nearly a 1/2 acre, and 32 period revival homes including Spanish, American Colonial, Tudor and Gregorian. The narrow tree lined streets give a sense of comfort and grace to the neighborhood. Access to the Heard Museum, light rail, Phoenix Museum of Art are but a few of the benefits of life in Alvarado.

The homes, built between 1927 and 1940,  average about 3800 square feet and many sit on 1/3 acre lots. Below is a little virtual tour we created to give you a better sense of the homes and neighborhood. Enjoy-- Gene Urban

Medlock Place is a Historic Neighborhood & District In Uptown Phoenix, AZ

We have been producing a series of articles on our primary web site, www.UrbanTeamAZ.com, exploring the various historic districts in uptown and downtown Phoenix Arizona. We will be including our summary of the various historic neighborhoods and the virtural tours we've created here on Urban Life as well. Our first post is on Medlock Place. We hope you enjoy.

Medlock Place, an historic neighborhood in uptown Phoenix Arizona, was once described as rural living at its finest. Today it is hard to believe homes north of Camelback between Central and 7th Ave could be considered rural. That's time for you.

Medlock Place Historic District is the collective name of a number of subdivisions dating back to the 1920's. The principle neighborhoods are: Orangewood Estates,Medlock Place, Medlock South, Aldrich Place and Evans Add to Orangewood. A few other small subdivisions, Tyson Place, The Palms, 21 Pasadena and Brentwood Park add to the mix known as Medlock Place Historic District.

Variety is a term often used to describe the architectural styles in the neighborhood. Bungalow, Spanish Colonial Revival, English Tudor Revival, Pueblo Revival and California Ranch can all be seen. Add to that the mature and often dense vegetation due to irrigation and you have a unique bit of old that looks nothing like the desert it sits in.

Medlock Place and South Medlock are my personal favorites in the district. The larger lots and lack of sidewalks give it a rich feel. The roads lined with little date palms 80+ years ago, now reach high over the streets adding even more charm.

Below is a tour we put together of the area. Hopefully, this will give you a sense of the neighborhoods and homes that make Medlock Historic District very special. For more information we recommend Medlock's exceptional web site.

Help Phoenix Families This Thanksgiving on Turkey Tuesday

We just got this email in and thought we'd share it with our readers. sounds like good program and a way we can be of service to our community. Goggle, gobble

The nation’s largest one-day turkey drive, 12 News Turkey Tuesday, will take place on Tuesday, November 24, from 6 a.m. to 10 p.m. On this designated Tuesday, 80 Bashas’ and Food City stores will collect frozen turkeys and monetary donations for St. Vincent de Paul. Now in its 16th year, 12 News Turkey Tuesday has become a Thanksgiving tradition for many Arizona families, schools and businesses. All donations will benefit hungry families just in time for Thanksgiving. During last year’s Turkey Tuesday drive, Arizonans donated a record 26,432 frozen turkeys which fed thousands of local, needy families. Individuals who are unable to visit a store to make a frozen turkey donation can make an on-line donation at www.stvincentdepaul.net.

Gene Urban
The Urban Team at Realty Executives
602-234-5777

Annual Downtown Phoenix Pub Crawl News & Info

A cold beer in a cool downtown… it must be the Downtown Phoenix Pub Crawl. It is time for the 3^rd rendition of this annual event and its coming up soon… Friday, November 13^th at 9:00 PM.

The festivities begin at 4^th Street & Garfield and features fifteen of downtown Phoenix’s finest beer and spirits joints including:

1. 1130 the Restaurant
2. Bar Smith
3. Bentley's Night Club
4. Carly's
5. Coach and Willie's
6. District
7. Hooters
8. Kincaid's
9. Majerle's
10. Seamus McCaffrey's
11. Sonoma Casual Dining
12. Steve's Greenhouse Grill
13. Stoudemire's
14. TGI Friday's Front Row
15. The Turf

Special additions to the event include:

• After Hours Breakfast to Sonoma Casual Dining starting at 1:30 AM.
• Discounted Room to crawlers at the San Carlos Hotel. Go to www.hotelsancarlos.comand enter in the code “DPUB.”
• Trolleys to transport the crawling teams to their respective pubs will be available as well.

You can purchase tickets at the event for a mere $15.00 or in advance for just $12.00 by going here.

Hope to toss down a cold one with you tomorrow night…

Gene Urban
The Urban Team
602-234-5777

your downtown & central phoenix real estate guys

Urban Team Lauches Short Sale Phoenix Web Site

The Urban Team is proud to announce the launch of our newest web site... www.Short-Sale-Phoenix.com. By the name you know the topic: Short Sales in the Greater Phoenix and Scottsdale, Arizona region.

The site has a lot of information about selling and buying homes via the short sale process. We have a FAQ section, common forms area, a page with a step by step guide for selling a home by short sale plus legal resources and more.

If you or someone you know has questions about short sales in the Phoenix Arizona area, we have lots of answers, help and information. We hope you enjoy the site and feel free to toss us an email with questions and thoughts.

Best to you,

Gene Urban & Ron Urban
The Urban Team at Realty Executives
602-234-5777