Should I Consider Buying a Short Sale or Bank-Owned Property?!?
By now you have probably heard and read about the distressed housing market down here in Arizona. As a consequence of the mortgage collapse of 2005-06 and rampant rumination that caused the meteoric rise in housing values, it was only a case of when would the housing market correct and return to some semblance of normality.
It occurred rather all of a sudden during 2006 and had been in a downward spiral since then. As a result of this housing price correction, there is currently a surplus of chances to purchase distressed and devalued real estate assets near the base of the market in Urban Phoenix.
BUT BEWARE! All isn't as it appears...
Before we get into it, let's speak about what's a short-sale vs. Bank-owned property.
SHORT SALE - A short sale is a property in which the owner is delinquent in paying their home loan payments. It hasn't yet been foreclosed on by the bank, but it could be IN THE PROCESS of being foreclosed on. In this situation, the owner, many times through an agent (their real-estate agent) will arrange a stay of execution on the foreclosure and allow the owner to try and sell the property for a price that is sometimes BELOW the total mortgage amount on the property. The bank is fundamentally agreeing to take losses on their loan amount in the hopes of avoiding a foreclosure proceeding and having to take physical possession of the property.
BANK-OWNED OR REO (real-estate owned) - In this situation, the bank has gone through the entire foreclosure process and actually taken title to the property and evicted the previous owner in order to sell the property.
So now that you have a clearer understanding on what these are,
Here are the good points and bad points to buying short sales and bank-owned (REO) properties in Phoenix. This is what you want to grasp to decide whether this type of property purchase is for you.
By now you have probably heard and read about the distressed housing market down here in Arizona. As a consequence of the mortgage collapse of 2005-06 and rampant rumination that caused the meteoric rise in housing values, it was only a case of when would the housing market correct and return to some semblance of normality.
It occurred rather all of a sudden during 2006 and had been in a downward spiral since then. As a result of this housing price correction, there is currently a surplus of chances to purchase distressed and devalued real estate assets near the base of the market in Urban Phoenix.
BUT BEWARE! All isn't as it appears...
Before we get into it, let's speak about what's a short-sale vs. Bank-owned property.
SHORT SALE - A short sale is a property in which the owner is delinquent in paying their home loan payments. It hasn't yet been foreclosed on by the bank, but it could be IN THE PROCESS of being foreclosed on. In this situation, the owner, many times through an agent (their real-estate agent) will arrange a stay of execution on the foreclosure and allow the owner to try and sell the property for a price that is sometimes BELOW the total mortgage amount on the property. The bank is fundamentally agreeing to take losses on their loan amount in the hopes of avoiding a foreclosure proceeding and having to take physical possession of the property.
BANK-OWNED OR REO (real-estate owned) - In this situation, the bank has gone through the entire foreclosure process and actually taken title to the property and evicted the previous owner in order to sell the property.
So now that you have a clearer understanding on what these are,
Here are the good points and bad points to buying short sales and bank-owned (REO) properties in Phoenix. This is what you want to grasp to decide whether this type of property purchase is for you.
About the Author:
Phoenix Short Sales Expert focuses on Short Sales in the Phoenix AZ metro areas. Reasons for short sales include minimal credit damage, capability to acquire a future mortgage, work factors, avoiding foreclosure and low taxation burden. We will help you with your Short Sale today!Phoenix Short Sales Expert 2 N Central Ave 720
Phoenix, AZ 85004
(480) 648-4929
Phoenix, AZ 85004
(480) 648-4929
0 comments:
Post a Comment