So what is the Difference Between Foreclosures, Short Sales , & Reg Sales?
You might be asking yourself what is the difference between a short sale and a regular sale or what is the difference between short sale and foreclosure. Here is a great video we found to help you understand the difference. One of the most common questions asked by a buyer is what is a better deal? Buying a reg. sale, foreclosure or short sale. Most new buyers don’t know the difference between the three. The 2 number one differences between all three sorts of Real Estate deals are the length of time it takes and the amount of information you have on hand by the seller. Time is important because of the length in time your offer may take before it is accepted. So lets break down the three so you have a better understanding. First is the everyday sale which is what the majority are acquainted with. You the buyer make and offer to the seller. The seller commonly absorbs about a week of your time to check the offer and let the purchaser (you) know if its excepted, rejected or if there may be a counter offer.
Buying foreclosure vs short sale
Q. Are short sales and foreclosures the same? Not so fast! A foreclosure works in a comparable style. The difference is you are working with manger of a bank because it is a banked owned property. Its also safe to say they usually have no idea whats going on partly because they never stepped foot in the house. Could this be a good thing or a bad thing for a buyer. In a everyday sale you are dealing with seller which makes it easier to know details of the house. Because a seller can tell you the condition of house whereas in a bank owned property they have no idea whats going on. In fact you may get stuck finding out something is wrong after your purchase but you purchased the property ” as is” and most likely signed paper work preventing you from being able to sue the bank.
With a short sale it has to do with loan. An owner of a property can’t financially pay for there loan or does not pay for the loan because the house is worth less then the loan ( borrowed money). For example if you the buyer received a loan for $200,000 and purchased a home for $200,000 in Connecticut but a few years later your house is only worth $99,000. In this case most home owners aren’t going to come up with he difference either because they don’t have the money or they don’t want to pay that extra money for a home that is not worth the cost. When an owner knows they no longer can afford a property they will enter it in a short sale which can generally take up to 6 months to get approved.
Well there you have it, the short version of what a the difference between a foreclosure, short sale and a regular sale is.
Related Terms:
advantages of short sale vs foreclosure
foreclosure vs short sale homeowner consequences
