As unfortunate as it can be when homeowners sometimes 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. BUT these are NOT the only two options.
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 happens 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.
REMEMBER: AS a homeowner YOU have options and can avoid a short sale or a Foreclosure! Call me to go over your personal situation.
Aunque tan desafortunado como puede ser cuando los propietarios que se retrasan en los pagos de la hipoteca y deben enfrentar la posibilidad de perder sus casas tienen que recordar que ay que tomar accion!
RECUERDE: COMO propietario de una vivienda, USTED tiene opciones y puede evitar una venta en corto o una ejecución hipotecaria. Llámame para repasar tu situación personal