The post below was written by my colleague out in NC, Debe Maxwell.

Debe does a GREAT job of simply explaining the difference between a Foreclosure and a Short Sale. Even though she sells homes in North Carolina, the answer is the same here in Texas.

I'd like to add, that while it may be called a "short sale", the time to close on a short sale transaction can MANY times take much, much longer. You need to talk to a knowledgable REALTOR to find out all the details.

If you're interested in looking at Foreclosure or Short Sale properties here in the North Dallas and McKinney area, please contact me for a FREE list. Thanks, and enjoy Debe's blog post:

Via Debe Maxwell - Search Charlotte Homes for Sale - Charlotte NC Neighborhoods (Helen Adams Realty):

What's the Difference Between Foreclosures and Short Sales?

Real Estate Q and AYou've got to love reading through some of the questions and answers on Trulia!  I always love to clear up the consumer's questions that seem to be so simple for us but, not so elementary for those who are not in the real estate business.  Here's the short version of a recent question that I thought needed a bit of clearing up: 

What is the difference in a foreclosure and a short sale and which is the best one to buy?


In response to the initial question - The difference between a foreclosure and a short sale is that a foreclosure is owned by the bank and a short sale is still owned by the homeowner of record. That homeowner is dependent upon the bank(s) approval of the sale of their property for less than what they owe on their mortgage(s). The short sale process can take awhile but, there are different schools of thought as to which is the best to purchase--short sales or foreclosures.

Consider this--Many homeowners who have lost their home to foreclosure, leave their homes angry and tend to stop maintaining or caring for their home, sometimes removing appliances and light fixtures as they are asked to leave their home, and sometimes even maliciously destroying their former homes as they leave the home. Many short sellers WANT to protect themselves from the 7-10 years of bad credit that a foreclosure can bring, therefore they do everything that they can to keep their homes maintained so that they CAN get a buyer and get out from under their mortgage with as little damage to their credit as possible.

Short sales can and often DO take longer than a standard home purchase or even a foreclosure but, the home that you buy, compared to other options (standard resale or foreclosure), can be in better condition and at a great price too.

Buying a foreclosure is easier on you and your agent but, if you have patience, a short sale can be the better investment, oftentimes requiring FAR less rehabilitation for you, as the buyer.

 

 




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2 Comments on What's the Difference Between Foreclosures and Short Sales?

JAN
10
2011
759,096 Points 13 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp

Some programs now in-cent the owner to leave the home in good shape in a foreclosure exactly for the reasons mentioned in your post. Even short sales can be problematic as sellers by definition do not have the money to stay in the home so there may be a lot of deferred maintenance issues
10:15am • #1
455,327 Points 1 Featured Post

Good Morning Kim, thanks for putting the excellent post back up.
10:19am • #2


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Kim Daugherty, d + b real estate McKinney, TX REALTOR Broker/Owner

McKinney, TX

More about me…

www.RealFamilyRealEstate.com

Address: McKinney, Allen, Prosper, Frisco, Plano, Fairview, Lucas, Celina, Melissa & Anna, "In McKinney's Historic Downtown - on the Square!", McKinney, TX , 75069

Office Phone: (972) 838-5394

Cell Phone: (469) 667-8225

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As a McKinney Texas REALTOR I'm proud to say that I live here, work here and play here! My blog will feature real estate information & market activity specific to McKinney, Allen, Frisco, Plano, Prosper and surrounding Collin County cities. Whether you are a local buyer, seller, renter, resident or fellow agent, I hope that this blog will provide insight into what makes McKinney and Collin County so unique!
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