What are Foreclosure Short Sales?
A foreclosure short sale is a term that is tossed around a lot these days, but to the average home buyer, the term can be confusing. What does it have to do with foreclosure, what kinds of properties are sold through it and when? What a short sale really refers to is sales that occur after a home has been scheduled for a foreclosure sale, but before the sale actually occurs.
How a Foreclosure Short Sale Begins
Once a homeowner defaults on a mortgage, the lender will begin to make preparations to proceed with a foreclosure sale in order to retrieve the money lost on the unpaid loan. This usually involved filing papers with the local county court or registrar, showing how mortgages have been in default and requesting permission to schedule an auction. Once this permission is granted, a Notice of Default will be issued and the sale will be set for a date sometime in the future.
Learning to Buy Homes at Foreclosure Short Sales
From this point until the sale actually occurs is known as the preforeclosure period, and this is when a foreclosure short sale can occur. Homeowners will often only have two options at this stage. They can sell off their property and use the proceeds to pay off their debt, thus avoiding having a foreclosure on their record and their credit ruined, or they can seek to refinance their mortgage. Unlike bank owned homes or property from HUD, distressed properties bought through a short sale can only be purchased direct from the homeowner. Similarly, you won't find brokers advertising these properties either, which can make them difficult to find. However, the potential for finding a great deal is very high, as buyers often win homes for huge discounts through this method of purchase.
Find Foreclosure Short Sales in Your Area
BankForeclosuresSale.com can help you find listings for all kinds of real estate, including a foreclosure short sale in your area with the potential to save you a bundle on investment or home purchase. Explore the foreclosure listings in our database and find great opportunities.
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