subject: Understanding Tucson Short Sales [print this page] Anyone interested in purchasing property in Tucson may be interested to learn a little more about Tucson short sales. However, for many people, understanding Tucson short sales can be quite difficult, mainly because professionals oftentimes use lingo to make the deal seemingly more difficult to understand. Today we break down what Tucson short sales mean, and how you can benefit from them.
What is a short sale?
During a short sale, the lender accepts a discount on a mortgage in order to avoid bankruptcy or a possible foreclosure auction. H does this relate to you as a buyer? It means that instead of buying property for the seller, you are getting it directly from the lender and at a discount too.
Do you have an example?
Sure, let's say that a homeowner that is currently facing foreclosure has a first mortgage of $250,000. You decide to make an offer to the lender for around $170.000 the lender accepts your offer as payment for the loan. This is what happens during Tucson short sales. As you can see, this dramatically decreases the cost for you to buy a home. There have been examples of banks accepting bids as low as 60% of the original value.
Why would lenders accept such a deal?
For most people it seems like there has to be a catch somewhere, why else would lenders accept less money for something that they already have an agreement? There is no catch when it comes to accepting these bids, it has to do with basic economics. There are several reasons why Tucson short sales are accepted.
Most banks do not like having bad loans or excess inventory on their books. This means that if they can get rid of a bad loan or excess inventory without taking a massive loss, they are likely to do so.
Most lenders realize that once a property goes into auction, there is little they can do. There are many fees involved in going to auction and they are not guaranteed a good price either. They may be better off simply taking the money and be done with the process.
As you can see, as a prospective buyer you can benefit from Tucson short sales in many ways. You get a home at a great discount, and the lender gets rid of the home on their books, it is a winning combination for both parties.
