Short Sale or Foreclosure? Find Out Which is Best for You!

 There are many great Scottsdale area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (480) 596-2900 for a FREE home buying or selling consultation to answer any of your real estate questions.

There is a common misconception that there is no difference between a short sale and foreclosure. If that is the case, why go through the headache of a short sale when you could just hand your keys to the bank and let them take the property back? I always advise my clients that a foreclosure will limit your ability to purchase a home in the future, especially with the recent changes to the FHA guidelines. FHA’s previous maximum lending amount was $346,000 but has since been lowered to $271,050. If you are looking to purchase a home that costs more than $271,050, you are basically forced into a conventional mortgage.

A conventional mortgage does have a big difference between when you can purchase a home after a short sale versus a foreclosure. After a short sale, you can purchase a conventional mortgage after two years with a 20% down payment, three years with 10% down or seven years with little to no money down. With a foreclosure, you are not allowed to purchase a conventional loan for seven years.

If you have a foreclosure, your only option is an FHA loan for a home under $271,050. With that being said, a short sale is much better compared to a foreclosure. Also, a foreclosure has a much more severe hit to your credit score as opposed to a short sale. If you or someone you know is considering a short sale or foreclosure, I would be more than happy to discuss it and also speak with the attorney I use to answer any legal questions about short sales and foreclosures.

My phone number is (480) 596-2900 and I look forward to hearing from you soon. Make it a great day!

Why Should You Be a Pre-qualified Buyer?

I know most people would rather wait to speak with a lender and give up their financial information to become pre-approved before shopping for homes, yet it only takes about 15 minutes. The reason it’s so important to become pre-approved beforehand is that most sellers will only look at an offer if it comes with a pre-approval letter. As you know, there are plenty of homes on the market for sale and only one you truly want. I want to make sure you get that property and that you don’t lose it because you weren’t pre-approved.

Another advantage of pre-approval is that when the loan officer runs your credit score, they may find things you can do to raise your credit score and ultimately get a lower interest rate. We both know that means a smaller payment and more money in your pocket!

If you want to get in touch with one of my preferred lenders, give me a call at (480) 596-2900. Thanks again and make it a great day!

What Can You Expect for 2014?

Today I wanted to talk to you about what 2013 brought us and what you can expect in 2014. 2013 was a great year for sellers with home prices going up 20% on average. Buyers also enjoyed 2013’s low interest rates. If you bought a home this year, you’re probably happy with the equity gains thus far. As the year comes to a close, the market has slowed a bit from July to the present. Also over the past three weeks, the market is beginning to level off around the 100 mark. This is giving us a healthy balance for both buyers and sellers and we are trending back to normal.

If we look at the contract ratio, it’s sitting at 37%. This means for every two homes that are on the market, one home is under contract which is very healthy this time of year. Because the market is leveling off, we’re optimistic that market will return and begin to appreciate again in 2014 at a rate of 3-5%. There are many variables that could change things, but the trend is showing we are headed for a great 2014.

It’s still a great time to buy and sell and be sure to lock in your interest rate while they are still below 5%. Call me if you want to discuss the market at (480) 596-2900. Thanks and enjoy the holidays!