History Of Foreclosures and Bank REOs Going Back To The1930’s

Should I Consider Buying a Short Sale or Bank-Owned Property?!?

Before we get into it, let’s discuss what is a short-sale vs. bank-owned property.

SHORT SALE – A short sale is a property in which the owner is delinquent in paying their mortgage payments.

BANK-OWNED OR REO (real estate owned) – In this case, the bank has gone through the complete foreclosure process and actually taken title to the property and evicted the previous owner in order to sell the property.

Here are the pros and cons to purchasing short sales and bank-owned (REO) properties in Phoenix.

There is one big pro – you are typically going to get a property below even current market value.

Short Sale (1) While you are still dealing with the delinquent property owner, the contract will have to be approved and signed off on by the bank taking the loss. The bank can only pick one, of course. (2) Remember, in this scenario, the bank has forcefully taken ownership and possession of the home before attempting to sell it. It is becoming more common to hear stories of how angry homeowners damaged/destroyed property in the home, removed appliances, plumbing fixtures, cabinets, light fixtures/ceiling fans and/or other home fixtures. (2) Prepared to take on the risks associated with buying distressed properties for the reward of getting a below-market-value property (3) prepared to get their hands dirty in making repairs and organizing the cleaning and trades to come in and refurbish damaged properties (4) Are not concerned with long waits in getting replies from banks on properties they have submitted offers on.

Here’s the short answer.

Pros and Cons of Purchasing Short Sales and Bank Owned Property in Metro Phoenix

Real estate is not immune to market conditions. Sweeping like unstoppable wave it bowled over US economy, crushing employment, housing and bank markets.

Farm and housing properties alike could not escape the wrath of foreclosure and in the end ended up as bank REO’s. Much like in today’s Bank REO’s bank did not make money on sales but merely purged the properties from its lists of assets.