What in the world are short sales?
July 28th, 2010
Do you hear murmurs at the office or the gym in Mesa, AZ about short sales and question what in the world they are talking about? Short sales are a handy little term that refer to the sales of homes. The term itself kind of explains it all if you understand what 'short' refers to in short sales. Cleary, because short sales refer to homes, refer to real estate transactions. Short sales are simply selling a property when the purchasing price is short of the amount that the home owner needs to pay off the mortgage loan.
Short sales in Mesa, Arizona occur when the owner of the property owes more than the house could be possibly be sold for. The owner will need to get approval from the bank that gave him his mortgage to see if short sales can be used to sell the house for less than what he owes the bank.
To explain a little better, short sales are when the bank lets the home owner sell the home for less money. Investors especially love to buy short sales because they are a bargain. Short sales are a good investment for anyone, usually.
Anyone can purchase short sales and it is a good deal for all of the parties involved. Sometimes people think that short sales are a bad thing to get involved with, but they don't know what they are talking about. People who sell there home using short sales are doing it on purpose. It is their plan to use short sales of their home to avoid having foreclosure from the bank. If they have their house foreclosed on, the bank will take it back and the home owner will be kicked out, probably by the sheriff.
With short sales, it is a good deal for everyone. As we said earlier, the buyer gets short sales at a discounted price. So they will get a nice home for cheap and they can live in it. For the person that owns the home and wants to use short sales to get rid of it, they have benefits too. Short sales are usually for home dwellers that can not afford to pay for their home any more. So, they go to the bank and say that they want to use short sales to sell their home. If the bank agrees, the home owner can sell his home for less than they need to pay off the mortgage. This is good because they don't have any money.
The bank comes out of this well too. If the bank allows short sales, they will not have to go get a home with foreclosure and they can get their money when the short sales are completed.
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Fred Weaver is a founding co-owner of Group 46:10. He has been working in the financing/real estate business for over 7 years. Fred began his real estate career by working for a large wholesale bank as a processor and rate/lock specialist for home mortgages. After 2 years in the business, Fred transferred from the banking side of home loans to the mortgage side. While on the mortgage side of financing, Fred gained experience originating mortgages and processing files for Morgan Capital of Arizona, Inc.
Kevin is a founding co-owner of Group 46:10. He began working in the real estate business in 2007 after spending 8 years working in the finance industry for companies such as Bank One, Green Tree Financial, & GE Capital.