Property Q&A in Whittier>Question Details

E, Other/Just Looking in Whittier, CA

what is a short sale vs a foreclosure?

Asked by E, Whittier, CA Tue Feb 17, 2009

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If you are a seller in the midst of hard times, you prefer a short sale of your home over a foreclosure. Your credit has a much quicker and better chance of recovery than with a foreclosure. I have a client that has been able to sell their property via short sale, minimizing the impact on their credit to the point that a little over a year later they are now looking to buy a smaller home at today's low prices.

If you are a buyer, looking for a bargain. You are looking at short sales and foreclosures. Foreclosures are more of a sure thing, if you have an accepted offer. This is because you are dealing with the actual seller/owner. Short sales are not a sure thing, because although the owner would gladly take your offer, it is up to the bank to decide, if they will agree to take less than what is owed on the mortgage.

Either way, you want to make sure that you are represented by someone experienced with successfully negotiating short sales and foreclosure properties. It can make the difference between winning the deal or walking away with nothing...

If you have any other questions, feel free to call me.

Arlene Garcia Hanner, Broker
SoCalAgency.com
(562) 862-8943
(800) 783-0038
Web Reference: http://www.socalagency.com
0 votes Thank Flag Link Tue Feb 17, 2009
A short sale is a situation where the owner of the home is still in posession of the home, but owes more to the bank than the property is worth. In order for someone to buy the home, the home seller needs to either 1)come up with the difference between the sales price and the amount owed on their loan or 2)prove that a hardship situation exists and explain why they can't afford to keep their home.

A foreclosure is owned by the bank and all negotiations are done directly with the bank and their agent.

This is just a high level explanation -- I would be more than happy to go into further detail if you like.

Best regards,
Melanie
Web Reference: http://MelanieMcShane.com
0 votes Thank Flag Link Tue Feb 17, 2009
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