SHORT SALE AND FORECLOSURE HOW ARE THEY DIFFERENT

Dated: 10/18/2018

Views: 122

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.


For a list of Short Sales or Foreclosures in your area, contact me via call or text at 210-288-2054, 

or email me victor@sa-broker.com!


Image title

Blog author image

Victor Madrigal

Victor Madrigal, from a young age, witnessed his father invest money, time, and labor into real estate. It was these memories that encouraged Victor to become a Realtor in 2009. After successfully obt....

Latest Blog Posts

Quarantine Spring Cleaning

Quarantine Spring CleaningThere’s a good chance you’re spending more time at home than you are used to. Whether you had travel plans change, or you are now working remotely from home, or you are

Read More

5 Things To Help Extroverts During Coronavirus Shutdown

I am a true extrovert at heart and if you are anything like me, you are not okay right now! That is why I have written down some ways that have helped me #stayhome. Take some time to reflectFor,

Read More

Moving Into Your New Home

Moving into a home is probably one of the most exciting accomplishments in life.  What’s your take on the hassle of moving. Especially in a case where you lived in an 700 sq ft apt going into

Read More

The Thought Of Downsizing

Have you ever wondered if your house is too much for your current situation? Maybe you feel your house is too big, too much maintenance, too expensive? Downsizing isn’t just for “older people”

Read More