Hey there! Are you confused about what a foreclosure is compared to a short sale? Take a look below to read about the difference and learn before you start your home search!
Short sales are anything, but what they are called. The term “short sale” does not mean that the particular homes for sale will be a fast closing. It means that the home is almost in a foreclosure status, and the sellers have made an arrangement with the bank that holds their mortgage, to accept less on the home than the sellers owe. By the sellers being able to sell their home for under what they still owe, this can be a win-win for the bank and the seller. The bank won’t loose out entirely and have to make the home a foreclosure, while the seller can get out of a bad situation without allowing the home to go into foreclosure. The banks will still evaluate the appraisals once they come in and debate whether they will accept the offer with the lower price, considering the market value of the home and review other aspects as well. Short sales can take as little as 3 months, however, they have been known to take 6 month, or 1 year. The speed of the processing comes from the lender and how soon they can locate their overseas owners of the note and get negotiations accomplished. Short sales can be a great option to get a good deal on a home, IF you have time to wait on the closing date.
Homes that are in a foreclosure status, are homes where the seller came into a hardship, and could no longer make the mortgage payments on the home. This then resulted in the home going into foreclosure and taken over by the bank. Many times, you will find these homes to be listed under the market value, which results in a good deal for the home buyer. However, these homes are also notorious for being destroyed or in need of major repair. Foreclosure homes can close in a typical 30 day cycle, lender approval permitting. Many times, the home buyer is not allowed into the home to make needed repairs, until the home has closed and the deed has been recorded at the courthouse.
Take a look at our area foreclosures for sale and let me know when you would like to see some homes or get your mortgage pre-approval! Call me at 910-545-2689 today.