Short Sale and Foreclosure: How are They Different?
As unfortunate as it can be when homeowners 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. 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.
Short Sale 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.
Foreclosure 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 a foreclosure auction. For buyers, foreclosures are riskier than short sales, because homes are often bought sight unseen, with no inspection or warranty.
The team at Scott Farnan Team has experience working with Delaware short sales and Delaware foreclosures, and work with experts in the field to ensure smooth transactions.
About the Scott Farnan Team If you live in Delaware or Pennsylvania and find yourself in need of a professional realtor skilled at buying, selling and negotiating real estate the Scott Farnan Team at Berkshire Hathaway Home Services, Fox & Roach REALTORS® is here to help. The Farnan team can answer questions on staging and closing to home inspections and what repairs are required to sell, The Scott Farnan Team offers clients over 25-years of real estate and client services experience, all with the indelible backing of Berkshire Hathaway Home Services, a perennial leader, Nation-wide, in home and commercial real estate. The Farnan team is prepared to guide you through the buying and/or selling process, connect you with trusted partners and aim to reducing the levels of stress that typically come with buying and selling a home. Contact us today to get started or search our current listings.