SHORT SALE AND FORECLOSURE HOW ARE THEY DIFFERENT

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.

http://www.breakthroughbroker.com/img/site_specific/uploads/crop_sm_Bp5.jpg


Ted M. Daigle

www.337homesearch.com

337-945-6763



Ted Daigle Headshot
Author:
Phone: 337-945-6763
Dated: December 2nd 2017
Views: 117
About Ted: About Ted Daigle – Realtor Having the right real estate agent means having an agent who is commit...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

Oakbourne Estates Country Club Lafayette LA Homes For Sale - Oakbourne Estates is a high end
Quick Tour Of Mon Jardin Subdivision - Mon Jardin Subdivision is a unique
5 Signs That Your Lafayette Kitchen Needs An Update -  Every Lafayette Realtor®
Lafayette House Tour Etiquette Guide In Two Words - When it comes to Lafayette house

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

eXp Realty Louisiana
2000 Lake Street
Lake Charles, LA
337-419-3480