Thursday, March 25, 2010

Smart Home Buyers Look For Foreclosure Short Sale

Buyers in the housing market in Phoenix, Arizona are seeing many more homes for sale today with special circumstances like REO, foreclosure, foreclosure short sale, and others. All these special circumstances have something to do with a bank, but we will explain each briefly below:

-Bank Owner – the bank has taken ownership of the property and the bank is a seller. Not as good for the buyer as a foreclosure short sale.

-REO – much the same as a bank owned property

-Corporate Owned – Also like a bank owned property, but the business that owns it is set up differently than a bank.

-Foreclosure – This process is also not as favorable as a foreclosure short sale. The lien holder has acquired the property through a court proceeding. Every state does this a bit differently. It can take several months or years to acquire a property that is foreclosed.

--FORECLOSURE SHORT SALE – when a seller in Phoenix, AZ is in trouble financially and your offer as a buyer does not cover the expenses to sell the home and pay off the existing mortgage the current home owner may ask the lender to take a partial payment and accept it as payment in full. With a foreclosure short sale, the bank will often accept it because they do not want to own the home through foreclosure. This gives you, as a buyer some leverage with a foreclosure short sale. It can be the best situation for you to buy with a home that is available through foreclosure short sale.

We believe that as a buyer or as a seller, the foreclosure short sale is a great opportunity for everyone to get what they want. Also, with the sadf, the bank gets some remedy to a bad situation also. With all parties avoiding foreclosure proceedings, the foreclosure short sale is instantly a better deal for everyone. While the home owner doesn’t want to lose the home, selling to you with a foreclosure short sale will help them keep their credit in tact and get them out from a mortgage that they have already proven they can not make payments on. For the bank, accepting a foreclosure short sale keeps them from having to deal with the court process that gives them possession of the property. It also will net them a smaller loss (since they will be taking a loss from foreclosure sale) if they accept a foreclosure short sale. The buyer getting a home through a foreclosure short sale can take advantage of these to other parties willingness to use the foreclosure short sale process and be in a better financial position because they get a home that is usually in very good condition for a very competitive price. They don’t have to wade through all of the court paperwork that can come with a foreclosure.

Do you have questions? Read the Short sale FAQs.

Are you a Realtor? Then get free short sale training by Kevin and Fred at Free Realtor Training on ShortSalePower.com

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