Distressed Homes. A distressed property generally falls into one or more of three categories.
Foreclosed or Bank Owned Property (REO) Properties: These are properties that were foreclosed on by a bank or investor. It is common to find that appliances and other home amenities have been removed. These homes generally come without a warranty (As-Is) and buyers are required to sign a lengthy addendum, removing the bank from all responsibility.
However, because of our current housing shortage, a large number of foreclosed (REO) homes are marketed initially at market value (the same as seller occupied homes). Most REO homes close within 60 days.
Short Sale Properties: A short sale property is one that is sold by the current owner for less than what is owed. Many homeowners who purchased a home before 2006 in Arizona paid more for a home than it is currently worth. Fortunately, as our home price continue to go up, many of the “under water” houses are being able to be sold at market value. These houses generally are sold As-Is.
A distressed home is frequently caused by the seller being under monetary strain. Whether a job loss, divorce, pay cut, medical condition, relocation or other financial stress, the owner has lost the ability to pay on their mortgage.
Because the holder of the mortgage note needs to approve and dictate the sale, buying a short sale home can take as little as 30 days or up to a year. If a buyer needs to be in a home by a specific day, buying a short sale property may not be the best option.
Fix-up Properties: A fix-up property needs minor to significant repairs. Depending on the degree of repairs, the property/lien holder may have a difficult time being financed. Most fix-up properties come “As-Is” and are usually a cash sale.
Call Kai Realty at (520)-616-3426 to visit Distressed Homes for Sale.
Foreclosed Homes – Newly Listed
(within the last 10 days)