Question: What's the difference between a short sale and a foreclosure?
Answer: I get this question all the time. Many people are confused about the difference.
A foreclosure is a home that it now owned by a bank. The price has been set by the listing agent and the asset manager at the bank. A foreclosure can usually close in 30-60 days. Most foreclosures are as-is sales.
A short sale is a home where homeowner owes more than the home is worth. The listing price is set based on comparable sales in any given neighborhood. The decision to accept a purchase contract must be made by the bank (or banks) that hold the mortgage(s). The short sale process can be unpredictable because it depends on the responsiveness of the mortgage holder. These homes are usually as-is sales as well.
If you want to move quickly or need to have a definite closing date then a foreclosure may be the better option. However, if you have flexibility and are willing to wait out the process a short sale may be a great option.
If you or someone you know would like information about buying, selling, or renting a home in Prince George's, Montgomery, Charles, Calvert, Anne Arundel, Howard, and/or Baltimore Counties please contact Dr. Stacey-Ann Baugh of Century 21 New Millennium.
Dr. Stacey-Ann Baugh
Century 21 New Millennium
FINALLY! A DOCTOR WHO MAKES HOUSE-CALLS!
Information deemed reliable but not guaranteed!