Foreclosure Short Sales

What are Foreclosure Short Sales?

Foreclosure short sales is often a term which is thrown around a great deal these days but, to your common house purchaser, the expression is often confusing. Specifically what does it have to do with home foreclosure? What sorts of properties tend to be offered by means of foreclosure short sales and when? A short sale is the sale of a home at a discounted price by the bank instead of foreclosing on the homeowner.  A short sale typically begins right after a house is slated for the foreclosure sale, but just before the auction sale takes place.

When can a foreclosure short sales begin?

Once a loan is considered in default the foreclosure short sale will begin.  Banks will send a ‘Notice of Default’ or NOD letter to the homeowner to let them know that the loan is is default.  The lender will also file notice of default in the public records of the county in which the home is located and in some areas can post the NOD letter in the window of the home.  A homeowner in that has received a notice of default and is not able to catch up the payments on their home and should contact a real estate professional right away to consider their options.

While there are several options in this situation, sell the home, do a mortgage assignment, or go through foreclosure, foreclosure short sales can be the best option for a homeowner that wishes to avoid the detrimental impact of foreclosure.

If you liked ‘Foreclosure Short Sales’ you may also like:

What is a Short Sale In Real Estate?
Short Sales Definition
Home