Unfortunately, when a homeowner is facing financial hardship and falls behind on mortgage payments or simply owe more on the mortgage than what the house can sell for, we run into a short-sale or foreclosure situation.
Here’s the difference:
A short sale is when a homeowner owes $150,000 on the mortgage but is selling the house for $120,000. The lender must sign off on the decision to short sale the property. An explanation for the short sale is required. No short sale can occur without lenders approval. Short sales are lengthy and requires a lot of paperwork. It can take up to 12 months to complete a short sale purchase.
A foreclosure is when a homeowner stops making mortgage payments and cannot afford to keep the mortgage. The bank will seize the property. Foreclosures are enforced by the lenders. The lenders will put the house up for sale hoping to clear the mortgage. If the homeowner is occupying the home during the foreclosure process, they will be evicted. Unlike short sales, foreclosures do not take long to complete.
For more information on short sales and foreclosures or if you’re interested in purchasing a short sale or foreclosed property, please contact me.
If you or someone you know are in a distressed situation and possibly facing a short sale or foreclosure, please give me a call or send me an email ASAP. I may have a CASH buyer for you.
THANKS FOR READING!