Real Estate - Short Sales And Foreclosure

When a person's real estate property is in trouble, short sales and foreclosure can be confusing. Some people believe that foreclosures are better than short sales, while others feel that short sales are more beneficial. Each have their own reasons for why they believe one is better than the others. However, I will show you how to tell the difference between these very common terms in real estate.

Rating Credit

No matter what option a person chooses, the effect on his credit rating will be negative. A short sale will result in a lower credit rating than a mortgage. If you're going to sell short, it will be easier to recover your loss. I don't think any of these are the best options, but short sales will be better for your credit rating if you have no other option.

Fees

Foreclosures have lower fees and lower Real Estate Tax Sales settlement costs. Lenders are charging large fees to approve a sale, which is why so many people aren't getting involved. You are likely to lose your real property if you have financial difficulties. Why would you pay extra fees?

Time

People who have their homes foreclosed before foreclosure are doing so because they can buy more time to find the money that they need. Short sale is a great option for people who have financial problems. Owners who list their property have 60 days to either sell it or raise the funds.

Real Estate Agent

Short sales are difficult because you need an agent to help you find a buyer. Because the agent would get less commission, they will often hide it from buyers and concentrate on selling properties of normal price. Short sales are a major problem. This is why so many people end up in foreclosure. You can still talk to a realtor and explain your situation. Most agents will be able to understand your situation and may even make exceptions for any rule they have created. Read more info