A note on foreclosures and short sales
The National Association of Realtors reported that approximately one third of existing home sales for the second quarter of 2008 could be attributed to foreclosures or short sales. Here’s a very basic explanation of both:
Foreclosure - Can occur when a homeowner fails to make mortgage payments. The lender can sell or repossess your home as a result of you defaulting on the terms of the agreement.
TS says: Banks don’t really want to take back homes (they’re banks not property managers) so if you are in trouble try to negotiate.
Short sale - Can occur when the loan amount owed on a home exceeds the price the home can be sold for. Your lender may agree to accept less than what you owe to complete the sale.
TS says: This is an alternative to foreclosure but not to be entered into lightly. The lender can still choose to pursue you for the remaining balance or “deficiency” after the sale.
Tags: foreclosure, real estate, short saleRelated Stories
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1 opinion for A note on foreclosures and short sales
Home prices down, foreclosures up, Greenspan weighs in
Aug 14, 2008 at 11:40 am
[…] price is partially driven by the fact that approximately one third of all homes sales reported were foreclosures or short […]
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