Difference Between Short Sales and Foreclosures

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“A short sale is the sale of your house for less than what you owe the bank on the mortgage.”

We Buy Houses Virginia Beach: When you find that you cannot pay your mortgage any longer you might have to face the facts and consider that you will most likely have to give up your home. If the setback is temporary and you expect to be able to pick your finances up once again soon, you may be able to call the lender and tell him about it. They are much more willing these days to work with homeowners to keep them in their homes rather than foreclosing.

If the bad news is not temporary and you believe you’ll end up losing the house, act as soon as you know this to have the best chance at coming out with your credit somewhat intact. You’ll need it when you go forward with your life after you leave your house. Even landlords do credit checks these days before they rent to their tenants, so you want to do the best you can by your credit.

If your mortgage payments are behind by a couple of months, you will receive a letter from your bank or lender that tells you that you are in preforeclosure and they will be placing you in foreclosure soon. Preforeclosure gives you a warning about what is to come and also gives you an opportunity to try to become current and catch up. This is an excellent time to work with the lender on setting up a way to get caught up especially if your situation is a temporary setback from which you expect to bounce back to normal.

A short sale is the sale of your house for less than what you owe the bank on the mortgage. It is often talked about in foreclosure situations because if you are in preforeclosure you may find an investor or other buyer who is willing to buy your house for less than market value. That is an advantage that draws buyers because they will make a profit when they resell. The seller gets the house sold and the bank paid off, and the bank gets more back on the loan than they might if the foreclosure process goes all the way through to the end.

In many cases, sellers who choose a short sale over letting the house become foreclosed on will come away with a better credit outcome. Experts say that a foreclosure can be worse for your credit than a bankruptcy.

Virginia’s 24 Hour Home Buyers, is a locally owned Real Estate Company in Virginia Beach that buys houses. We buy houses that need major repairs or in “as in” condition. Divorce, relocation, double payments, tax liens, over financed, foreclosure,etc.

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If you have a home you would like to sell without paying expensive real estate commissions, contact us today for a free, no obligation consultation on how we can buy your house in less than 7 days and close when you want.

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