short sale vs. foreclosure, how to arrange a short sale


Many new real estate investors are wondering about the short sale vs. foreclosure debate. In the debate of short sale vs. foreclosure there are positive and negatives to both sides. Firstly, when it comes to price, buying foreclosure tends to be the most inexpensive way to buy a property. When we talk about short sale, investors are getting a nice price cut, but not at steep as we get from foreclosures. However, when it comes to a short sale vs. foreclosure purchase, the short sale tends to be a safer bet, because investors get to inspect the home prior to gaining ownership. Most foreclosures are sold as is and if there are any substantial problems with the home, investors won’t find out about them until it’s a bit too late.
 
Another factor involved in the short sale vs. foreclosure debate is time. Purchasing a foreclosure is much more less time consuming than getting a short sale, because the short sale process involves an approval process for both the investor and the homeowner. Prior to allowing the home to be sold, a lender needs to qualify a homeowner for the whole process which adds to the timeline. Furthermore since, in many cases, people are just learning how to arrange a short sale the process gets slowed down even further. In the end a short sale provides a chance to get a higher quality property at a low price while foreclosures offer a quick and cheap way to get a property.