Short sale vs Foreclosure
The real estate industry is filled with various terms that can be confusing to the buyers as well as sellers. They are often confused about what property to buy, whether to sell and buy via a real estate agent or sell it themselves? Buying and selling a property through short sale or foreclosure can also be a never ending debate between homeowners.
If you are also puzzled about which route to go, then you have come to the right place. Read on to find out the difference between a short sale and foreclosure. Each of them has different advantages and disadvantages. Choose the one that best suits your unique situation.
What is a foreclosure in Palm Beach County, Florida?
A home which is foreclosed is the one where the owner is unable to meet his or her mortgage loan payments and the bank repossesses the home. If a homeowner is unable to pay their house payments due for any reason, the lender of the loan has the right to foreclose the property so they can recover the money that was lent to them.
The home that is foreclosed is sold either through auctions or via real estate agents. The foreclosed property can also negatively impact the homeowner’s credit rating and often makes it difficult for them to get another mortgage for many years.
The rules for foreclosed properties vary from state to state. If you are also concerned about your mortgage payments and require more information, then check out the foreclosure process information at the HUD government website.
What is a short sale in Palm Beach County, Florida?
A short sale property is sold at a price lower than the amount owned by the homeowner on his or her mortgage. The homeowner’s lender agrees to “short sale” the property when the borrower is unable to meet the payments on his mortgage.
The short sales are mutually agreed by the lenders and the borrowers. In a short sale, the property is sold for a lesser amount than the actual worth of your property. The unpaid amount (deficient) may or may not be owed by the borrower.
Of course, this option takes lot of negotiations between the lender and the borrower to be finalized. All stakeholders of the property should agree on the deal.
Short sale vs. foreclosure – your options!
Both the options have their own advantages and disadvantages. However, a short sale is often preferred by the borrower since it has a lesser impact on the borrower’s credit. While the foreclosure can affect the borrower’s credit score by more than 300 points, the short sale will only harm it by 100 points typically.
The borrowers who are subjected to foreclosure are often unable to receive another mortgage loan for 5-7 years. However, those who are able to short sale their property can receive a loan immediately.
Since 2008, Americans are struggling to recover from the cracks in the economy. Many are having difficulty meeting their monthly expenses, let alone pay timely mortgage payments. Unable to pay the monthly payments has increased the occurrence of foreclosure and short sale properties. However, you, like other homeowners, have a third option where you can sell your house fast in Palm Beach County.
If you are also facing difficulty with your monthly payments, talk with your lenders and discuss your options. We can also help you decide which option is best for you. Just contact us using the form and we’ll get back to you as soon as possible.
Unfortunately, sometimes banks are also not willing to work with you and the only option you may have is to sell your house fast. We at Home Solutions FLA can help you sell your house fast and provide you with an all-cash offer that you won’t regret. Just fill out the form on our website and provide us information about your situation. We can make you a fair offer within 24 hours.
If you do nothing, your last resort will be foreclosure and eviction. That’s the worst choice to make. It will not only harm your credit negatively but also will make it impossible for you to get another house loan. Consider all your options and make the right decision. After all, a home is the biggest investment you can make in your life.
Unable to meet the monthly mortgage loans on your property? Don’t worry! You are not alone! We can help you get out of this situation. Fast. And easily! Just contact us by giving us a call anytime at (561) 370-8335 or fill out the form on our website now. We’ll make you a fair all-cash offer within 24 hours.