Short Sale vs Foreclosure
A Short Sale is typically considered when the homeowner can no longer afford to make the mortgage payments but wants to avoid the blemish of a foreclosure. The bank or lender must agree to a Short Sale before the process can begin.
The bank or lender agrees to a short sale when it is established that the homeowner can no longer make mortgage payments. With a short sale, the bank or lender is agreeing to accept an amount to pay off the loan that is usually substantially lower than the actual pay-off amount.
A realtor will "list" the home announcing it as a short sale. Those interested in buying short sales are usually investors and can pay cash to the bank or lender or have already arranged for a loan with another bank or lender to pay the short sale amount.
Is a Short Sale the Best Choice?
The only advantage to the homeowner is that they are avoiding a foreclosure. Other than that, they are losing their home and will need to find other housing. Agreeing to a short sale does not mean the homeowner cannot buy again, and less time will need to pass before qualifying for another purchase as opposed to allowing the home to go through foreclosure.
Is there an Alternative to a Short Sale?
A Short Sale is good for the bank/lender and good for the investor (the one typically buying the home) but only serves to avoid a foreclosure for the homeowner. Obviously, if you can keep your home that is always best to do.
How can you keep the home if you can no longer afford the payments? There are a number of things you should try before you walk away from your home. We encourage you to contact us right away if you would like more info on a Short Sale or to avoid one.
Short Sales versus Foreclosure
If you allow a foreclosure and walk away from your home, your credit will be compromised and future home buying opportunities could be missed. A Short Sale is easier on your credit and allows for a future home purchase to happen sooner. The better choice of the two is a Short Sale. However, if you can avoid the Short Sale and keep your home, that is the best choice yet. Recent government decisions can help you do just that. To determine eligibility, please contact us right now. There is no cost for our service.
How do we help you?
Enjoy expert assistance that will result in an approval process for your mortgage short sale, including mortgage tips designed to help with the correct procedure for your short sale. We are there to help get your questions answered and to avoid problems typically associated with mortgage negotiations. While we may be able to help you avoid foreclosure through the use of a short sale, we may also be able help you keep your home by using a loan modification if you qualify. It all begins with a simple phone call or email.
What is a Foreclosure Property?
A foreclosure property is a home in foreclosure -- when a notice of default has been filed in the public records. It means the owner has stopped making mortgage payments and the lender has given notice that unless the payments are brought up to date, it will sell the property to the highest bidder.
Lenders can foreclose for other reasons, but the most common reason lenders file a notice of default is when a borrower is at least two payments in arrears.
If the home owner does not bring the loan current, the lender will take the property away from the owner. The final step the lender takes after a certain period has passed is to try to auction the property at a public sale.
Not all homes that fall into foreclosure go to public sale because owners have the right to make up back payments up to a point, the time which varies from state to state.
Real estate investors and home buyers see profit in buying foreclosures because they can often buy the property for the amount owed, picking up the home owner's equity for free.
What is a Foreclosure Property?
A foreclosure property is a home in foreclosure -- when a notice of default has been filed in the public records. It means the owner has stopped making mortgage payments and the lender has given notice that unless the payments are brought up to date, it will sell the property to the highest bidder.
Lenders can foreclose for other reasons, but the most common reason lenders file a notice of default is when a borrower is at least two payments in arrears.
If the home owner does not bring the loan current, the lender will take the property away from the owner. The final step the lender takes after a certain period has passed is to try to auction the property at a public sale.
Not all homes that fall into foreclosure go to public sale because owners have the right to make up back payments up to a point, the time which varies from state to state.
