Short sale vs foreclosure: How do they work and which is better?

Whether you are a homeowner or an interested buyer, it is crucial to gain a better understanding of what a short sale and a foreclosure is. While both initially sound like bad news, it is not always the case. Whether you are a homeowner or an interested buyer, it is crucial to gain a better understanding of what a short sale and a foreclosure is. While both initially sound like bad news, it is not always the case. Let's see where the distinction falls and determine which is more favorable.

Short sale

A short sale happens when a property's value drops and the homeowner is paying more for the mortgage than its actual market price. In effect, the owner requests the bank's approval to sell the property at a lower cost. The whole process takes longer and lots of paperwork is involved. A short sale doesn't necessarily equate to a bad credit history on the seller's part. When these properties are put to market, they are normally listed as for sale by owner in Columbus Ohio.

Foreclosure

A foreclosure takes place when the lender, usually a bank, seizes a property from a homeowner after the latter fails to make payments. It often involves homeowners abandoning the property, but when that's not the case, the occupants will eventually be evicted. The property may be placed in an auction and the entire process is not as meticulous as that of a short sale. See for sale by owner Columbus Ohio if you're on the lookout for some foreclosed homes in the area.

The record of the foreclosure will be reflected in a homeowner's credit history for 7 years. It may also be difficult to acquire or buy a new property in the future. Although, it can be possible after a minimum of 5 years. So, make sure your next investment will be a good one. Visit real estate investment Columbus Ohio and get the professional help you need.

Which is favorable?

In terms of maintaining a good credit history, opting for a short sale is certainly the way to go. If you're a buyer, take into consideration the amount of time it may take to close a deal for a short sale home and the risks that are involved in purchasing a foreclosed home. Remember that some foreclosed homes are abandoned and left in bad condition.

The bottom line is, you need an expert advice before making any decision. Talk to a professional who can discuss the important points of a short sale versus a foreclosure. Once you have all the guidance you need, consider listing your home as for sale by owner in Columbus Ohio.


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Article Tags: for sale by owner columbus ohio , real estate investment columbus ohio

Submitted On Dec 12, 2017. Viewed 45 times.

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