What Is The Difference BetweenÂ A Foreclosure and Short Sale?
Many homeowners may find themselves in the position of being near a foreclosure process.Â Some of these homeowners may be offered an option called Short Sale.Â Although this process may save the homeowners from going through a Foreclosure, there is a lengthy process involved and it can take several months to complete.Â Some key points to remember if you are considering the Short Sale option:
1. You must request this option in writing to your lender.
2. Permission must be granted by your lender (since you are asking them to accept an amount that is lower than the mortgage balance owed).
3.Â You will want to speak with an attorney on the effects this process may have on your credit scoring/rating.
4.Â You will want to get the exact terms from the lender and request any credit reporting procedure (as it pertains to your case) be put in writing also.
For Buyers Looking to Purchase a Short Sale
Although the process may take a little longer than buying a Foreclosure, this can sometimes pay off in the end.Â Many times, you will find that you can walk into the settlement transaction ahead in equity.Â