If you are looking to get a great deal on a house, you have probably noticed listings that are either a Stanislaus foreclosure or a Stanislaus short sale. Both options involve needing lender approval, as opposed to just the seller’s approval.
But there are a number of differences between the two, and it is important that you understand how they work.
A Stanislaus short sale occurs when a homeowner can no longer afford to make their mortgage payment, but the lender has not yet foreclosed on the property. During this process, the lender allows the homeowner to sell their house for less than the amount that they owe on their loan. This helps the homeowner to avoid foreclosure, and helps the lender to avoid losing all of the money on the loan.
When a seller is going to sell their Stanislaus house as a Stanislaus short sale, they will receive the offer as in a normal real estate deal. After they accept the offer, the deal isn’t done. The offer then goes to the lender for approval. This step slows the process a lot. In fact, it can take 120 days or more to know if your offer has been accepted and you make it to closing.
When a Stanislaus house is in foreclosure, it means that the lender currently has ownership of the house. The previous homeowner missed enough mortgage payments that the lender was forced to take ownership of the house away from the homeowner.
It usually takes between three to six missed payments before a house will be foreclosed on. Before the lender takes back possession of the house, they have steps they are required to walk through. The steps include notifying the homeowner of what is going to be happening. If the seller is not able to pay the missed payments and fees, then the lender forecloses on the house.
Lenders do not want to hold onto property, so once they foreclose on a Stanislaus house their goal is to sell it as quickly as possible. These properties are often sold at foreclosure auctions. While you can get a great deal on these houses, the lenders are looking to recover as much of the original loan amount as they are able to.
Most foreclosed homes are sold “as is.” You will not be able to include many, if any, contingencies into your offer. The majority of foreclosed homes need a little TLC and many have been empty for months.
If you are the seller, a Stanislaus short sale is a much better situation for you. Short sales do not damage your credit as much as a foreclosure. You also do not go through the process of being evicted from your house. A foreclosure will take you seven years to recover from on your credit report.
If you are the buyer, a Stanislaus foreclosure can be the better way to go. Short sales, on average, can take a lot longer to close than a foreclosure. When a house is foreclosed on, the lender is more motivated to find a new buyer to get the bad loan off their books.
If you are struggling to make your mortgage payment, talk to your lender as soon as possible to avoid being foreclosed on. If you are a buyer, be on the lookout for a deal through a Stanislaus short sale or foreclosed property. Consider the differences so you know which one is a better option for you.
And if you need to sell your Stanislaus home fast, call our team today to see how we can help you.