Good Morning Lakewood/Have you considered purchasing a short sale or foreclosure?

The Difference Between Real Estate Foreclosures And Short Sales

If you’re in the market to buy or sell a home, you’ve probably heard a lot about foreclosures and short sales. However, many homeowners and buyers delving into the real estate market are unclear about what these terms actually mean.

Although foreclosures and short sales are similar, there are quite a few differences. A foreclosure is when the lender takes possession of a mortgaged property because the owner is not able to keep up with the payments.

short sale is when the owner sells the home at a price lower than the balance owed on the real estate. They can then use the proceeds of the sale to pay off a portion of the mortgage. A short sale usually occurs when the homeowner is unable to make the mortgage payments but the value of the property has dropped. The bank then chooses to sell the property and bear the loss, as this is sometimes better than forcing the homeowner into foreclosure.

Impact On Credit Score

One of the biggest differences between a foreclosure and a short sale is their effect on your credit score. A short sale will be reported as paid in full or negotiated, which will only lower your score by approximately 50 points and might affect you for 12-18 months. However, a foreclosure can reduce your credit score by up to 300 points and may affect you for more than three years.

Influence On Future Employment

A short sale will have no effect on your future or current employment status, as it will not appear on your credit report. However, a foreclosure will show up on your credit report. Some employers run credit checks on potential employees for certain positions. If you are discovered to have gone through a foreclosure, this could have a negative impact on your chances of being selected for a job.

When it comes down to it, although selling your home as a short sale is not ideal, it is a much better alternative than a foreclosure. If you have any questions about the difference between short sales and foreclosures in the real estate market, please call me at 562-879-9677 or email me at loubandb@gmail.com for additional information.

Compliments of RealtyBlogContent.com

Advertisements

Before going into real estate in 2001, I worked in the medical field. Found it very rewarding helping others and decided to make a switch and help those, who want to achieve the "American Dream". As a homeowner, I know the importance of home ownership and nothing gives me more pleasure than to place those keys into the hands of a new homeowner. I look forward to helping you, with all your real estate needs.

Tagged with: , , , , ,
Posted in Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Recent Comments
%d bloggers like this: