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.
Author:Andrew Johnstun 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 ...
View our latest blog posts in your RSS reader. Click here to access.
About eXp Realty California - Northern / Central Valley
Trust eXp Realty and our team of real estate agents to help you find homes for sale or to sell your current home. We recognize the level of service that the mobile consumer demands. You have information. You have dreams. We possess experience, integrity, and innovation. Together we create leverage to make your dreams a reality.
Moving into a new home is an exciting time, and you’re probably dayd
"Colleen was attentive to all of my wants and desires and found me many homes to choose from. She guided me through my search with thoughtfulness and enthusiasm, ultimately finding my perfect home for me and with me."