Short Sale And Foreclosure

Short Sale And Foreclosure

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.

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.

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.


Andrew Johnstun Headshot
Author:
Phone: 916-996-4407
Dated: January 25th 2018
Views: 123
About Andrew: Drew was born and raised in Placer County. He is considered a specialist in the area and has lived ...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

5 NEGOTIATING SCHEMES THAT KILL A SALE - Negotiation is a subtle art in
6 Ways To Win A Bidding War Without Overpaying - Bidding Wars – 6 Ways to Win One
Ideas For Great Accent Walls - An accent wall can totally
Helpful Tasks For Your Move IN - Moving into a new home is an

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

eXp Realty California - Northern / Central Valley
2603 Camino Ramon Suite 200
San Ramon, CA
925-350-4389