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What’s the Difference Between a Short Sale and a Foreclosure?

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Hey everyone, today I wanted to talk about the difference between a short sale and a foreclosure. A lot of home buyers have been asking us about them recently, so we want to give you the low-down in case you were interested in purchasing one.

A short sale is when a seller is trying to sell their home for less than they owe on the property. They are trying to sell it short. A foreclosed home is already owned by the bank.

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Both types of properties can be difficult to work through and very time-consuming. Foreclosed homes may take up to 6 months to sell and even longer in some cases.

Foreclosed homes typically only qualify for conventional loans with 20% or more down. They don’t usually qualify for VA or FHA financing.

Before you decide to buy one of these homes, take a look at your timeline and see what a realistic time-frame is for you. Are you able to be flexible and wait 3-6 months for a home? If not, you may want to look at a different type of home.

If you’re thinking about buying a short sold or foreclosed home, give me a call. I’d be glad to help out and walk you through the process.

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