Foreclosures and Short Sales in Real Estate

There are a few differences between foreclosures and short sales in real estate. Short sales are initiated by the homeowner while foreclosures are initiated by the bank. In a foreclosure, the bank first tries to sell the home directly. However, if the auction does not bring up a buyer, it then becomes Real Estate Owned (REO) and sold through a real estate agent. Whether you choose to go through a short sale or a foreclosure depends on the circumstances of the home.

A short sale is often a multiple offer situation, and offers should be conditional on the lender's approval. When submitting an offer, make sure to add an addendum that outlines the contingency terms. Typically, lenders will agree to very few repairs requests, but a thorough home inspection is still important to help you determine whether or not the short sale is a good bargain. This is a great way to save money on a foreclosure.

Finding short sales and foreclosures in real estate is a good way to earn an income without much hassle. To find the best deals, work with other real estate professionals and find distressed properties in your area. There are many sources of distressed properties, and knowing what to look for will make the process much easier. Once you've figured out which types of distressed properties are available in your area, it's time to start making offers.

Foreclosures are typically cheaper than pre-foreclosures, and some of them can be obtained through government-backed financing. When buying a distressed home, be sure to work with a local agent with experience. They will be familiar with the laws and practices of the area. It is also a good idea to work with an attorney who specializes in foreclosures and short sales. You may also find the perfect distressed home through a professional real estate agent.

While there are disadvantages to a short sale, it is always better than a foreclosure. In a short sale, a homeowner can sell their home for less than what they owe on it. The lender must agree to absorb the loss in order to make a short sale. Therefore, it is better for the bank to avoid foreclosure if possible. However, a short sale has many disadvantages for both the buyer and the seller. However, if you're desperate to avoid foreclosure, short sales may be an excellent option for you.

Before making an offer on a property, make sure you have the money to cover it. Getting on a buyers list means you are in the forefront of the line to purchase the property. Your agent will use extensive resources to identify these properties. They can also help you secure a loan. A lender should provide you with a loan pre-qualification letter so that you know what you can afford and can act quickly when you find a good property.

The downside of real estate foreclosures is that short sales are slow to complete. Foreclosures can take months to close. If the lender accepts an offer that's too low, the property can go into foreclosure. While the process can be long and complicated, it is well worth the effort. Streamlining the process will help reduce the number of foreclosures and short sales. So, what should you do? Before making a decision, consult a real estate agent with experience in short sales.