The Sierra Vista area is not immune to the nations foreclosure and short sale crisis. Although foreclosures are slowly declining on the market and short sales are increasing, owner occupied sales have gone up over the last 6 to 8 months. This is a great sign for our real estate market since more homes are being sold by the owners and then by banks.
The difference between a short sale and a foreclosure is that the short sale option leaves a better credit rating than a foreclosure. A foreclosure property is where the previous borrower or homeowner has simply walked away from the home. These homes may be in dire disrepair and need a lot of work whereas a short sale is different; the borrower has contacted the lender and communicated their financial hardship. The lender in turn has agreed to sell the property to cover the remaining debt. Many times these borrowers are allowed to remain in the home during the short sale process so the homes may be in better condition. Also, short sale sellers do not have to be behind on their mortgage to apply, they simply must be in financial distress.
If you’re interested in looking at a short sale or foreclosure property anywhere in the Sierra Vista area there are dozens on the market currently. Home prices start at just $100,000 and can range as high as $400,000 depending on size, location, and amenities. Larger homes of four or 5000 ft.² are going to range between $450,000 and $550,000 but it also will depend on the condition. Homes in much need of repair or even replacement of appliances, cabinetry, flooring and such, will certainly be less expensive. Those in better condition will be able to gain more from the sale of the home than those that will need quite a bit of repairs.
If you’ve been interested or are considering purchasing a short sale or foreclosure it’s important to know the requirements that certain banks need before accepting an offer. If you’re applying for a home loan, many banks will want to see your credit history and report to know that they will not be stuck with the property once the new owner takes over. Also, some FHA and VA loans will require a certain appraisal requirement when it comes to inspections. Homes in much need of repair may not be covered under certain loans.
If you’ve been considering a short sale or foreclosure anywhere in Sierra Vista Arizona and surrounding neighborhoods please start your online search here or simply contact me and we can get started finding the right home, the right price, and in the condition you need.