The term short sale is something you should be familiar with. It is important for those who want to buy a house and those in debt. When they can’t cover monthly loan expenses for a long time, individuals have two options – to sell their home short or to face foreclosure. Most of them choose the first option as it has more benefits than the second one. For example, they will have control over the entire process. Also, a short sale has a less severe impact on a credit rating in comparison to foreclosure. If you can’t afford to pay your mortgage, you should consider getting a short sale approval from your lender.
On the other hand, if you are thinking about purchasing a property, it would be a wise idea to consider buying a short sale house. That way, you can save a lot of money on this purchase. Short sale houses are much cheaper in comparison to regular ones. If you have a limited budget for buying a new home, it is a wise decision to choose a short sale property. You will be able to furnish it according to your style and wishes with the amount of money you saved by choosing a short sale property.
If you have any questions or doubts regarding this process, you should contact one of the short sale agents, and they will explain everything in detail. No matter if you want to short sell your property, or to buy a short sale house, you will probably need some help from the professionals. Don’t hesitate to contact them as they will give you useful advice. If you have no idea what the short sale process is, and what are its steps, it is necessary to contact experts for assistance.
What is the difference between a short sale and a foreclosure?
Many people mix these two terms or think they are the same thing. However, they differ from each other a lot. When it comes to the short sale, you are in control over the entire process, including the sale. On the other hand, if you choose foreclosure, your bank will be in charge of this process. Also, a short sale has a less severe income on your credit rating. If you decide to pick foreclosure, it will have a significant impact on your credit score. As a result, you might face severe problems in the future, if you make a decision to apply for a loan at some point. It is easier to recover from a short sale than from foreclosure.
If you fall short of the balance left on loan for your property, you can cover your debt by selling your house short. The choice is all yours. On the other hand, foreclosure is something you can’t avoid if you are too behind on the mortgage payments, it is not your choice. At least you don’t have to fix something if it breaks or malfunctions. Also, you can stop making payments and continue living in your house, of course, until you get kicked out.