I just happened to come across a couple of Queen Creek listings while reviewing properties for buyers and I thought I would mention it here. Honestly, I’m not sure what to think of it. I see two perspectives here and thought I would put it to readers to share your thoughts.
Here’s the scenario…
A homeowner (in the case of the two properties, of the owners is a Realtor) is short selling their home in Queen Creek. However, in the listing information, the homeowners are specifically looking for investors who would want to buy the property and then rent it back to them for a going market rate. In other words, the homeowner is short selling their home, hoping to be able to stay in it and not move, and rent for probably half the cost of the previous mortgage.
On the one hand, I can see this as very appealing for an investor – they buy a Queen Creek home on the cheap and they get a committed renter who has pride in the home (no guarantee, of course). On the other side, the homeowner doesn’t have to move anywhere and basically keeps their existing home and lifestyle but at a much reduced cost. The bank is the loser here.
But if we consider that the bank’s loss is probably going to be the taxpayer’s loss as well, then this doesn’t seem quite right. In effect, the homeowner doesn’t really see a tangible impact from inflicting losses with the bank other than a hit to their credit for two to three years until they can buy another home. And would other homeowners, upon hearing of this, be incentivized to do something similar? In effect, a homeowner-driven transformation of their existing mortgage into a rental agreement at half price?
What do you think? Feel free to share your comments.
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