SHORT SALE AND FORECLOSURE HOW ARE THEY DIFFERENT

Dated: 03/09/2018

Views: 67


Image title


As unfortunate as it can be when homeowners fall behind on mortgage payments and must face the possibility of losing their homes, short sales and foreclosures provide them options for moving on financially. The terms are often used interchangeably, but they’re actually quite different, with varying timelines and financial impact on the homeowner. Here’s a brief overview.


Image title


A short sale comes into play when a homeowner needs to sell their home but the home is worth less than the remaining balance that they owe. The lender can allow the homeowner to sell the home for less than the amount owed, freeing the homeowner from the financial predicament.

On the buyer side, short sales typically take three to four months to complete and many of the closing and repair costs are shifted from the seller to the lender.

Image title


On the other hand, a foreclosure occurs when a homeowner can no longer make payments on their home so the bank begins the process of repossessing it. A foreclosure usually moves much faster than a short sale and is more financially damaging to the homeowner.

After foreclosure the bank can sell the home in a foreclosure auction. For buyers, foreclosures are riskier than short sales, because homes are often bought sight unseen, with no inspection or warranty.


Image title


COPYRIGHT: http://www.breakthroughbroker.com/short_sale_and_foreclosure_how_are_they_different#.WqKqfG1ubIU


Blog author image

Ann Nguyen

Ann Nguyen....

Latest Blog Posts

6 REASONS TO OWN A HOME

In addition to the obvious reasons for owning a home, here are six key benefits of homeownership that can help you decide to buy your own home . Happiness - The feeling of owning your own home

Read More

ORGANIC FOOD ON A BUDGET

Organic food usually tastes better, and is better for you, but it can also be very expensive compared to non-organic products. Organic food can cost nearly 50 percent more, thanks to the extra labor

Read More

CREATE AN EVACUATION PLAN FOR YOUR PETS

An evacuation plan is a necessity for every home, especially if you live in an area where fires, earthquakes, hurricanes, flooding, and other disasters are a possibility. Many homeowners create

Read More

HOW TO CHECK YOUR HOME FOR AIR LEAKS

We’re well into the fall season and winter is right around the corner. This is the time of year when it’s especially important to make sure your home is properly sealed. Air leaks can make it

Read More