As unfortunate as it can be when homeowners fall behind on mortgage payments and must face the possibility of losing their homes, short-sales provide an option to move on financially.
A short-sale comes into play when a homeowner needs to sell their home, but the house 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 shift from the seller to the lender.
On the other hand, a foreclosure occurs 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 an auction. For buyers, foreclosures are riskier than short sales, because homes are often bought sight unseen, with no inspection or warranty.
If you are in financial distress and at the risk of losing your home to the bank, contact us today!
We can help you in the short-sale process and move to a new place.