Short Sales vs Foreclosures vs Auctions

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Market Trends

Distressed Properties are coming!

Knowing the difference between Short Sales, Foreclosures, and Auctions. 

 A short sale occurs because the amount the owner owes on the house outweighs the house’s value. Owners can avoid foreclosure by going this route, which impacts credit scores less than foreclosures. Short sales are often priced lower than comparable sales. These homes could be hidden gems but head's up! They often have an extended closing date, not ideal for the quick timeframe buyer!

Foreclosures occur when owners default on the loan by missing multiple payments. The bank publishes the notice of the foreclosure auction. Most auctions are online and some require a real estate agent to handle the initial bid & paperwork. 

If the house does not sell at the auction, the property becomes bank owned. At this point, the bank will list and show the house just like the owner would have had he been the one to sell it. The bank can choose to evict the owner or allow him to continue living there until the house sells.

Remember to always get an inspection! Most of these properties will have blank seller's disclosures and very limited information.

Happy House Hunting!