Short sales may be taking longer as home prices rise

Welcome to June! I wonder what we will learn over this next month as your questions, on all sorts of subjects, continue to come in to “Asked and Answered.” I can’t wait to hear what’s on your mind. Don’t forget to jot down that question that has you puzzled and send it in to ask@azcentral.com. Here’s a peek at some of the topics that were addressed this past week: splash-pad fun for the kids; a simple fix to reconnect with Channel 2 in Flagstaff; cool info on what you can find inside the original building that housed the first City Hall in Phoenix; and the best form to fill out for help with college funding.

These topics represent a handful of the many questions that were answered over this past week through “Asked and Answered.” If you log on to ask.azcentral.com, you will find all the details about these, plus many more questions and answers. Go ahead — browse through some of those blogs. See if there’s an answer in there that will put a question you had on your mind to rest.

Here’s a question from Emily regarding a short sale in progress:

Why do “short sales” seem to take so long? It’s been over 6 months since putting in an offer on a short-sale property for my primary residence, and I still have heard nothing on when it will close. I was even asked to resubmit my financials over a month ago, and my escrow check has been cashed. Still nothing. Why?

I ran this one by Catherine Reagor, senior real-estate and growth reporter for Here is Reagor’s response to Emily’s question:

Rising prices in metro Phoenix could be one factor.

A few years ago, when home prices were falling, lenders were moving much faster to close on short sales to get them off their books and avoid a foreclosure situation.

But in the Phoenix area, home prices are climbing 4 to 5 percent a month, so some lenders are counteroffering on short sales and asking buyers to pay more.

Also, there are fewer short sales and foreclosure homes on the market, so the competition has heated up for the less-expensive houses.

If you are working with an agent, ask him or her to find out if other offers have been submitted on the home. Also, keep contacting the lender about the delay. Buying a short sale means more work for the buyer, but if you can get the home, it could be a bargain by today’s market standards. Good luck.

Now let’s see if we can answer something for you! E-mail your question to ask@azcentral.com.