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Distressed Homes, Renovated Homes and Short Sale Help…
Foreclosure Property vs. Short Sale Property
Foreclosure properties are typically distressed homes that are in foreclosure (i.e. a notice of default payment has been filed in the public records). It is a result of an owner ceasing mortgage payments followed by a lender delivering a notification that the property will be sold at auction if the payments are not brought up to date.
While there are other reasons that a lender may decide to foreclose a house, the most commonly seen reason is when the borrower is two or more payments behind.
Not all foreclosed homes end up in public auction. There is typically an allotted amount of time where owners have the opportunity to catch up on payments. (This amount of time varies from state-to-state)
Now, short sale help is required in-between when a lender forecloses on a house and when the property is suppose to go to auction. The difference between a short sale home and a foreclosure home is the short sale investors basically get a home for less, since they won’t have to pay off any existing loans or back payments. The current lender usually takes less than what they originally had coming to them, a minor cost of business intended to avoid dealing with a foreclosure.
(For more Short Sale Tips CLICK HERE)
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You can leave a response, or trackback from your own site.Posted on: Monday, June 21st, 2010 at 9:00 am
Posted in: Foreclosed Houses
Tags: distressed homes, short sale help