SHORT SALE AND FORECLOSURE HOW ARE THEY DIFFERENT

Dated: October 18 2018

Views: 169

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!


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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....

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