SHORT SALE AND FORECLOSURE HOW ARE THEY DIFFERENT

Dated: 10/30/2017

Views: 66

SHORT SALE AND FORECLOSURE: HOW ARE THEY DIFFERENT?


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.

Blog author image

Jackie Ogle

We are raising our family in the most beautiful place on Earth! Born and raised in upstate New York, I vacationed every summer in Destin Fl with my family. My grandparents had discovered this secr....

Latest Blog Posts

Remember To Vote In The Walton County Primary Election

Early voting for the Walton County primary starts Saturday, August 18!  Click here for details on hours and:

Read More

Looking For Healthy On 30A

Raw & JuicyRaw & Juicy, which has an airstream trailer and a new storefront location, both in Seaside, is a sure spot to grab a healthy meal, whether you are looking for solid foods

Read More

School Is Around The Corner

With school starting back up on the 10th, it's easy to believe that summer is almost gone. But I've noticed that locals are right up there, with our tourists and travelers from all over

Read More

Priced To Sell In Point Washington

If you are looking for a beach home to live in full time or perhaps a great investment for a rental property,  but don't necessarily have to be right on 30A, this could be the neighborhood

Read More