Short Sale Loans
Scottsdale & Phoenix, Arizona
Scottsdale & Phoenix, Arizona
When it comes to lending and home buying, all loans are not created equal. In fact, some of them are very different and unique. The perfect example of a unique type of loan is the short sale loan. Here is an overview of what a short sale loan entails and where a consumer might find one.
We often hear the term short sale loan when discussing a home going into foreclosure. This is because a short sale may be used by the home owner as an alternative to a foreclosure. A short sale loan might also be use by a third party unrelated to the property. Short sale loans are used when a home owner can’t make the mortgage payments and offers to pay the loan off for less than what they owe.
One might wonder why the bank or lender would ever agree to sell the home back to the borrower for less than they owe. The reason is very simple. They don’t prefer to sell the property at a loss, but they typically lose less money in short sale loans than they would if they had to go through the entire foreclosure process. Foreclosures are a no-win for everyone involved.
”Very fast approval of my deal and the funding on time. Very inexpensive Loan fees! 😀Leticia FuerteCustomer
There are two circumstances where a short sale loan might be needed. One circumstance is if you’re the home owner and can no longer afford to make the mortgage payments but want to keep the home. A short sale loan will damage your credit but not as much as if you allowed the home to go into full foreclosure.
The second circumstance where you might be involved in a short sale loan is if you’re a new home buyer. By purchasing a home through a short sale loan, you’ll most likely be getting it at a discounted price. Many potential home buyers do their research to find homes that are going into foreclosure mode, and they reach out to the lender to make an offer on the home.
As stated above, it’s not the ideal situation for the short sale lender, but it more often than gives the lender the chance to get rid of the property and lose as little money as possible. Unfortunately, just because you’re getting the property at a discounted price does not mean you’ll get it quickly. A short sale loan can often take more than a month to complete.
Basically, short sale lenders are lenders that are willing to let property go for less than what is owed on the mortgage. A 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 loan types.
We’re Arizona’s short sale lender. Always make sure you apply, because there are occasions where we may be able to negotiate some of the terms.