Phoenix Real Estate Questions From A Canadian Buyer, Part 2
Canadians Buying Arizona Real Estate
This is Part 2 of the Phoenix Real Estate Questions From A Canadian Buyer blog series!
Short sales & bank foreclosure vs listed houses. What are the differences? What are the benefits? What are the drawbacks?
What is a Short Sale?
In the Phoenix Valley a Short Sale is when a home is in pre-foreclosure and the bank agrees to sell the home to a buyer for less than what is currently owed on the home.
Banks will agree to do this because foreclosing on a home is expensive for them. When a bank is looking at a Short Sale offer, the decision maker is a bank employee looking at a spread sheet to determine if they will lose less money by selling the home as a Short Sale, or foreclosing on the home.
What is a Bank Foreclosure or a Bank Owned Property?
A Bank Foreclosure or a Bank Owned Property is real estate that has already been foreclosed on by the bank. The Bank as the owner of the home has the home on the market for sale.
Home owner selling their home.
A typical home on the market is being sold by an individual or family. Typically it is on the market for sale because something has changed for the seller's. It can be a change in their personal life (divorce, growing family, shrinking family, etc) or a change in their professional life (job transfer, job loss, etc).
The benefits to buying a Short Sale, Bank Owned Property, or home owner owned property will be in part 3.
Date: Wednesday, April, 9th 2008 @ 10:39:39 PM
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