Short sales and foreclosures are two options when you need to sell your home.
They are very different processes and may have different effects on your credit score.
Foreclosure is the legal process by which a bank or lender takes ownership of the property that was used as security for a loan, either because the borrower hasn’t been able to make payments or has failed to meet other conditions of their mortgage agreement. A foreclosure can take years and result in hundreds of dollars in late fees, penalties, and interest. It will also impact your credit score negatively for many years to come.
In contrast, short sales happen when a homeowner finds someone who will buy their home for less than what they owe on it – meaning they would still be liable on the remainder of their debt. Typically this happens when homeowners are facing financial issues and can’t make the payments, but it’s also a good option if you want to avoid foreclosure or if your house is too damaged to be repaired. With short sales, homeowners are able to take advantage of current low home values without suffering consequences.
If you need to sell your home for any reason, contact us for more information about foreclosures and short sales as options!
Foreclosure and Short Sales are two options for homeowners when they need to sell their home, but these processes are very different from one another.
With a foreclosure, the bank or lender takes ownership of the property that was used as security for a loan – meaning that you have defaulted on your loan and the bank has decided to repossess your house. Foreclosures can take years to complete depending on where you live in the country, and they often result in hundreds of dollars in late fees, penalties, interest charges, and other legal costs. Most importantly though, a foreclosure will negatively impact your credit for years to come.
In contrast, a short sale happens when a homeowner finds someone who is willing to buy their house for less than what they currently owe on it – meaning that they would still be liable on the remainder of their debt, even if they sell their home and receive an amount lower than what they originally paid to purchase it or owe on the mortgage. Short sales are often the best option for homeowners who either need to liquidate quickly to prevent foreclosure or who have homes that can no longer be repaired due to damage from a natural disaster like flood or earthquake. Because home values are low right now in many areas of the country, short sales can be a great way for homeowners to get out from under-crushing debts and move forward.
Now that you’ve learned a lot about Foreclosures and Short Sales we want to tell you the easiest and fastest way to sell your home is with an investor. Let the investor worry about all of the details and get your house sold FAST! If you are in Schertz Texas or the surrounding areas give us at Houses 4 Texas LLC a call. Click here for more info. We have assisted many home sellers by providing a fair cash offer.
The information in this guide comes from the U.S. Department of Housing & Urban Development (HUD). HUD publishes Consumer Handbook on Adjustable Rate Mortgages (ARM), which covers ARM basics and has tips on where to find an affordable mortgage. You can download a copy of their handbook here: http://portal.hud.gov/hudportal/documents/huddoc?id=ARM_Booklet.pdf