Tucson real estate : Foreclosures vs. short sales

Tucson real estate : People often ask me, about the difference between a foreclosure and a short sale. Below find a brief explanation of both and their current impact on the Catalina Foothills & Oro Valley housing market.

Short sale: Real estate sale where the proceeds are less than the balance of debts secured by a property and the property owner cannot afford to repay the difference. At the close of a short sale the lender(s) are essentially accepting less than the total amount due on the mortgage. Lenders are not obligated to agree to a short sale and not all sellers or properties qualify. 

Foreclosure: Property owner defaults on their loan and the lender(s) engage in a legal process to satisfy the debt secured by the property. The lender(s) may either take ownership of the property or have the property sold to pay off the debt.

Buyers often find foreclosure and short sales (collectively known as “distressed sales”) attractive since they tend to be aggressively priced. Don’t be fooled though, there are plenty of homes for sale that are not distressed and are also aggressively priced. Below find a snapshot look at the current inventory of single family foreclosures and short sales in the Catalina Foothills & Oro Valley

Homes Currently                                      Foothills        Oro Valley

For Sale

 All homes                                                        367                 319

Foreclosures                                                    16                   23

Short sales                                                      20                   28

% distressed                                                   9.8%               15.9%

Realtor Lisa Bayless specializes in Tucson Catalina Foothills, Oro Valley & Marana home sales. Contact Lisa for all your Tucson real estate needs.

Source: MLS 11/16/11

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