To buy or not to buy a short sale

Short Sales in Tucson

Although there are no actual figures recorded for the number of short sales done each year, many thousands of short sales occur annually. Many short sales are completed in the Tucson, AZ real estate market. Since a short sale is recorded just like a normal individual to individual sale rather than a foreclosure where legal title is transferred to a bank, statistics on the number of short sales completed each year cannot be compiled; however, one knows this number is high with current market conditions, perhaps almost as high as the number of foreclosures.

From an investor standpoint, buying short sales in Tucson, AZ is in many ways preferable to buying foreclosed properties. A short sale has many of the same advantages to an investor as a foreclosure; a short sale allows an investor to buy a property with all of the original owner’s equity wiped out, in addition to the bank generally taking a loss on the face value of their loan, as they do with a foreclosed property. Short sales in Tucson, AZ can be an excellent investment vehicle. Moreover, a short sale is generally in better condition than a foreclosure. Since the current owner of the property must consent to a short sale, and it is a ‘peaceful’ transfer of the asset rather than a ‘hostile’ transfer like with a foreclosure, the owner generally leaves the property in better shape.

To a Tucson property owner in distress, a short sale of their property is highly preferable to a foreclosure. The simple fact is that foreclosure destroys credit. A short sale does not negatively impact credit.

To the bank, a short sale has many advantages over a foreclosed property. A bank may be inclined to take a deeper discount on a short sale in Tucson, AZ than on a foreclosed property because they are able to avoid the cost of taking title to the property and avoid the expensive legal and other costs associated with foreclosure.

Short sales can also become a lengthy process for the home buyer looking to get into a home right away sometimes taking up to 6 months to facilitate. Since most real estate agents are not trained properly in processing short sales the purchasing process can take even longer. For this reason ask your agent how many short sale transactions they have “completed” and what their success ratios are. An experienced agent should have a 45.5 day processing time from beginning to end. Tucson, AZ can be an excellent way to capitalize on current market conditions, as the area will continue to grow and Tucson will continue to be a popular choice among investors and homeowners alike.

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