Short sale loans are short-term, hard money loans that allow investors to purchase distressed properties below market value, typically before foreclosure. In Arizona’s competitive market, short sales present a unique opportunity to acquire homes at a discount.

Because banks are trying to avoid foreclosure losses, they are motivated to sell the property quickly, but they often require buyers to close fast. That’s where short sale loans come in. These loans are designed for real estate investors who need funding to act fast on time-sensitive deals.

Basically, short sale lenders are lenders that are willing to let property go for less than what is owed on the mortgage. A Phoenix hard money lender that approves a short term loan is not necessarily titled as a short sale lender. Most mortgage lenders deal with this type of  loan not by choice but because they have to in order to lose as little as possible. One example is Prime Plus Mortgages, a mortgage company that is not deemed a short sale lender but does handle short sale loans among many other Phoenix hard money loan types.