Cash Back to the seller - Short sales in Phoenix AZ

October 16, 2008

When it comes to Phoenix AZ real estate deals these days there are no easy transactions. Although, there are many great home buying opportunities in Scottsdale, Tempe, Mesa and Chandler, sellers and buyers are too often at odd on value.

One real estate transaction that is getting closed are bank approved short sales or lender owned real estate (REO). Although, these deals are similar to ‘normal’ real estate transactions , there are some complicated issues involving contingencies, inspection periods, seller disclosures and earnest monies.Cash Back to the seller - Short sales in Phoenix AZ

I want to make buyers aware of a new ’scheme’ that short sale home owners are trying to get by potential buyers.

I call this “Cash Back to the seller” and new terminology I have added to the vernacular of the economic crisis.

Let me share a story.

  • Mr. Client put in an offer on home listed for short sale in Carefree.
  • The offer included electronics, plasma televisions, etc.. throughout the home.
  • The seller said that they would submit the offer to the lender if the buyer was willing to buy the equipment for $30K under separate bill of sale.

Here’s what is happening.

  • Let’s say that the bank accepts the offer.
  • The deal closes and all the deal proceeds go to the lender with no money to the seller due to the short sale.
  • However, the separate ‘bill of sale’ is outside the transaction. Thus, those monies would go directly to the seller.

Is this illegal? Probably, not. However, it presents a problem for buyers if sellers will hold up deals and not present or submit them to banks unless a buyer agrees to this purchase.

You may ask,  “why would a buyer would hold up a possible deal?”  The answer is that most sellers do not care if the home sells short or goes to foreclosure. Yes, you can avoid a foreclosure on your credit, though, by this time, the credit is ruined and sellers have little money.

Thus, if they can recoup some money, then all the better. If not, the sellers can hold up the deals from buyers and the banks. Is this bank fraud?? Not sure and it is too new to see the legal court case fallout that will come inevitably.

Keep your money safe. In the case of a ‘short-sale‘ in which the bank has not yet approved the ‘short-sales‘ and issued the necessary pre-approval through an “Agreement Notice ” escrow does not need to be opened and earnest monies do not need to be deposited.

Make sure you work with a Phoenix Realtor or Scottsdale Real Estate agent who is experienced with short sales and bank owned transactions and knowledgeable with the AAR , short sale addendum.

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Copyright © James Wexler *Cash Back to the seller - Short sales in Phoenix AZ*

If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.

Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale AZ short  Sales

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Written by James Wexler · Filed Under Articles, Buyers 

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