Foreclosures and Short Sales: Important Tips
It goes without saying that you can’t live without one thing: the roof over your head. Most people want their own home, especially if they have a family to take care of. Of course, you will need to plan a lot before buying a home, as this decision can have a huge impact on you and your family. Let’s learn more about it.
When buying a house
If you want to buy your own home, you have many things to consider. You may have to face some serious problems. For example, if you lose your job, it will be harder for you to keep your word. And in the worst case, you may have to deal with a short sale or foreclosure. This can have a negative impact on your everyday life. Therefore, you may want to understand how it works.
Short sale and foreclosure
If you are not familiar with the two terms mentioned above, you must first know the difference between the short sale and the foreclosure process. According to most people, foreclosure is a situation where you are forced to return your home to the lending authority, which is a bank most of the time. Once the house is handed over from the bank to the bank, you no longer have to pay the debt.
Apart from this, some people have the misconception that the short sale is not a real transaction, which is not true. No matter what happens, you must keep your word and you must be ready to meet the deadline.
In the event of foreclosure, the lender has to auction your home to sell it to the person who makes the highest bid. The lender will advertise the property for sale within a specified period of time. However, the law requires the homeowner to appear in court. The owner of the house is the same person who borrowed from the bank. In court, the homeowner must present his point of view on the mortgage. If you, the landlord, have strong evidence, you must present it. If you don’t have strong evidence, the judge can enter a verdict by returning your home to the lender.
On the other hand, in case of a short sale, you can sell your property. You will find a buyer yourself and will not be required to appear in court. And it will be an agreement between you and the lender. However, in some special cases, you will need the professional advice of a good real estate broker. But before closing the deal, you will need to make sure that the lender agrees to the procedure.
The two processes are different in some respects. It is important that you complete the short sale as soon as possible or the lender may lose interest in the property and not acquire it. But in the event of a foreclosure, there is little you can do, as you will have to comply with the court decision.
Simply put, foreclosure is not easy. Therefore, it is important that you get the help of a professional so that the process is completed in the best possible way.