Short Sale Loans

Short sale loans are a special loan that requires speed and care. For real estate investors, not all Phoenix hard money lenders, or hard money loans are made equal. For investors facing foreclosures, short sale loans can be an answer to all their funding needs. If you need a short sale loan for your investment, having access to fast Phoenix hard money loans is a necessity.

Real estate investors can use short term loans, or bridge loans to save properties facing foreclosures. When an investment property faces foreclosure, Phoenix hard money lenders offer short sale loans pay off the loan for less than what a borrower owns.

A short sale loan may be used as an alternative to a foreclosure. Some real estate investors use short sale loans to purchase foreclosed properties as well. Short sale loans are used when a real estate investors can’t make the property payments and offer to pay the loan off for less than what they owe.

Banks or lenders lose money on every foreclosure and make up the loss with a short sale loan than in the foreclosure. Phoenix hard money loans such as bridge loans and short sale loans help lenders, investors, and property owners retain as many assets as possible.

There are two circumstances where a short sale loan might be needed. One circumstance is if you are a real estate investor and can no longer afford to make the mortgage payments but want to keep the property. A short sale loan will damage your credit but not as much as if you allowed the home to go into full foreclosure.

You could also purchase a home through a short sale loan, you’ll most likely be getting it at a discounted price. Many potential house flippers and real estate investors track homes that are going into foreclosure, and they reach out to a Phoenix hard money 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. Phoenix hard money loans can help investors acquire properties with short sale loans. 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 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.