AS YOUR SHORT SALE AND FORECLOSURE SPECIALISTS, THE ALADIN GROUP CAN EDUCATE YOU ON THE PROCESS OF BUYING OR SELLING DISTRESSED AND BANK OWNED HOMES. 

IN HELPING HOMEOWNERS, THE ALADIN GROUP HAS RECENTLY EARNED THE CDPE (Certified Distressed Property Expert) CREDENTIAL.  CPDE IS A DESIGNATION EARNED ONLY BY A LICENSED REALTOR THAT HAS RECEIVED EXTENSIVE TRAINING TO SUCCESSFULLY MITIGATE AND NEGOTIATE A SHORT SALE AND SELL THE PROPERTY IN DISTRESS.  LESS THAN 1% OF REALTORS NATIONWDE HAVE ACHIEVED THE DESIGNATION AND DEMONSTRATE THE KNOWLEDGE TO SUCCESSFULLY NEGOTIATE A SHORT SALE~THE ALADIN GROUP IS PART OF THIS 1%! 

THERE IS NO FEE TO LIST YOUR SHORT SALE ON THE MLS.  AS A LICENSED REALTOR, WE ARE PAID DIRECTLY BY THE SELLER'S MORTAGE LIEN HOLDER.

WHAT IS A DISTRESSED PROPERTY?  Any property that has a foreclosure looming is considered "distressed."  This includes short sales and pre-foreclosures.  The sale is considered "short" when the value of the property drops below the value owed on the property.  THE ALADIN GROUP HAS A PROVEN SUCCESS RATE OF 95% "LIST TO CLOSE" RATIO!

WHAT IS AN REO/ LENDER OWNER/ BANK OWNED/ FORECLOSURE?  After a home-owner is in default for approximately three months, there is an Auction Date set, for approximately three months later.  The vast majority of foreclosures in Arizona occur through a trustee's sale.  The trustee's sale will be held at the Phoenix Courthouse Steps or at the Trustees office—regardless of where the sale is being held, bidders must bring a $10,000 deposit and the highest bidder must pay the balance of their bid by 5:00pm on the following business day.  In addition, all due diligence needs to be completed before the auction.  If the lender is the highest bidder at the trustee's sale, the lender takes title and becomes the owner of the property.  When listed for sale, these properties are referred to as "Foreclosures," "REO (Real Estate Owned)," "Bank Owned," or "Lender Owned."  Where do the properties go from here?  Most are listed on the Multiple Listing Service (MLS) although some can only be found on the bank's website.

 Short Sales (Sellers):

  • The ideal candidate for a short sale ihas a credit rating worth preserving. Otherwise, it may not be worth going through the complicated process. 
  • Short sales affect your credit score less than that of a foreclosure.  As for how a short sale affects your credit, it all depends on the lender reports the “short sale” to the credit bureau.  We found it helps to keep up with your payments but some lenders require you to be late in order to do a short sale.
  • The seller still owns the property in a Short Sale.
  • If you are doing s short sale on an investment property, the seller must count any amount forgiven by the lender as income and pay taxes on that income, even if no actual money was received. The IRS requires lenders to submit a Form 1099 stating the forgiven amount.  If the property is the Sellers’ Primary Address, or the Seller can meet the Internal Revenue Service definition of insolvency (either in bankruptcy or with debts exceeding assets), taxes will not be due on the forgiven amount.
  • For more questions, visit our Frequently Asked Questions.

Short Sales and REOs (Buyers):

  • Short Sale Negotiations average over 60 days.  REO negotiations average 1-3 days. 
  • A short sale, after an offer has been accepted by the bank, will expect the buyer to close within 3-4 weeks.  With an REO, the buyer generally closes 45 days from contract acceptance.
  • As a buyer, you can cancel your offer for a Short Sale at any time prior to lender acceptance (unless stated differently in the contract); with an REO, once your offer is accepted by the bank, your earnest deposit would be forfeited should you cancel after the inspection period.
  • Both Short Sales and REOs are sold in “As-Is Condition.”  An Inspection is still recommended and is generally reasonable grounds for cancellation.
  • In a short sale, a buyer is entitled to recieve Seller's Property Disclosure Statements and a CLUE report (insurance claims history).  In an REO, these disclosures will not be provided.
  • Many REO lenders require additional addenda to be included in any contract.  The Aladin Group will read this entire addenda and share with the buyer any changes which supercede the AAR contract.

Contact any member of The Aladin Group at 602-996-9910 to discuss the Short Sale process in more detail!