Short Sales and Luxury Homes in Scottsdale and Phoenix Areas -By Realtor Jen Wehner

Short sales are becoming an increasingly larger portion of the real estate market here in the Scottsdale and 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 price ranges 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 property market has been affected by higher interest rates on jumbo loans, limited loan availability, and increasingly strict requirements in qualifying for mortgages. According to the National Association of Realtors, inventory on homes priced above $750,000 has climbed from an 18 months supply in 2007 to a 40-month supply in 2009. NAR also disclosed that the foreclosure rate on jumbo loans was nearly twice the rate on conforming loans ($417,000 and below).

The sluggish world economy, shortage of opportunities to refinance, the increasing supply of luxury homes, and fewer qualified buyers has created a massive complication 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 homeowner in distress including the HAMP for loan modifications, and HAFA for short sales. Homeowners with higher loan balances 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 foreclosure 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 important for homeowners to understand their strategies, and should contact a real estate agent 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.

If you are interested in seeing real estate AZ for sell or listing your property you need to see this Arizona Real Estate Agent