Short Sale vs. Foreclosure
Due to our declining economy, I have noticed a trend in the news and I can sum it up in one word: Foreclosure. The word itself sounds foreboding. Come on; say it out loud, slowly. Fore…close…ure… See, I told you. Sends chills up and down your spine, doesn’t it?
Left and right, people are losing their jobs and at the same time, their homes. Most of these individuals are having a hard time keeping up with their house payments and in turn, are losing their homes at record speed. These defaults in home loans are hurting the banking system and their revenue. Some banks are having hard times selling the homes which were foreclosed on, which is causing banks to choose between a short sale vs. foreclosure.
A short sale vs. foreclosure is typically the same concept, but the short sale allows the lender to sell the home at a lower price than appraisal. Not only does this work for banks, but it ends up helping out the homeowner as well. Instead of negatively affecting their credit many homeowners and banks are choosing a short sale vs. foreclosure in hopes of owning a home again some day.
