Arguments of Buying Short Sales and Bank Owned Property in Metro Phoenix

by Chase Dubs on February 13, 2012

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 ever since then. As a result of this housing worth correction, there is currently a sufficiency of opportunities to purchase distressed and devalued real-estate assets near the base of the market in Urban Phoenix.

BUT BEWARE! All is not as it appears…

Before we get into it, let's discuss what's a short-sale vs. Bank-owned property.

SHORT SALE – A short sale is a property in which the owner is behind in paying their mortgage payments. It has not yet been foreclosed on by the bank, but it may be In The Act of being foreclosed on. In this particular situation, the owner, many times thru an agent (their real estate agent) will negotiate a stay of execution on the foreclosure and permit the owner to attempt to sell the property for a fee that is typically BELOW the total mortgage amount on the property. The bank is basically agreeing to take a loss on their loan amount in the expectations of avoiding a foreclosure proceeding and having to take physical ownership of the property.

BANK-OWNED OR REO (real estate owned) – In this case, the bank has gone thru the complete foreclosure process and basically taken title to the property and expelled the prior owner to sell the property.

So now you have a more clear understanding on what these are,

Here are the pros and cons to buying short sales and bank-owned (REO) properties in Phoenix. This is what you want to know to decide whether this kind of property purchase is for you.

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

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