Quick Guide: Short Sale vs. Foreclosure

    Many people have spent hours looking online before they even talk to us. And have many questions by the time they reach out. They come across a home that looks like a great deal and see it listed as a short sale or foreclosure. This point in the search prompts them to reach out and ask “What is a short sale? What is a foreclosure? And what is the difference between the two??”

    We’ve made a chart to hit some bullet points to keep it simple.

                        Short Sale                                                           vs.                                                       Foreclosure

    – Owner owes more than home is worth                                                            – Bank has already taken home over

    – Owner could still occupy                                                                                    – Bank has evicted owner

    – Owner will use sale to pay off mortgage                                                          – Owner has exhausted all options of paying for                                                                                                                                                                            the home

    – Buyer will have to negotiate with the seller                                                     – Buyer will work with the bank as the seller
    and then negotiate with the bank as the sale requires
    bank approval for purchase

    – The short sale process can take a long time since
    banks tend to have many routes and departments the
    offer has to go through before acceptance.

    For either kind of house it is highly recommended you find a qualified Realtor to help you purchase. This can be a complicated and involved process and it is best to have someone who is experienced by your side.

    Trackback from your site.

    Leave a Reply