What is better deal a Short Sale or a Foreclosure?
The answer to this question will depend on what are you looking for, but I can explain you some of the facts you need to remember on each of the cases
Foreclosures
•1) Very often the homeowner is upset about the foreclosure and they have taken their anger on the property by destroying it and sometimes the damage is not at a glance.
•2) In a foreclosure home you are against the clock, meaning, if you don't close in time, in most cases the lender is going to charge you a per diem for every day you delay the escrow.
•3) There are very few cases where the lender is willing to credit some money to the buyer because of the house conditions.
•4) Multiple buyers will be jumping to buy that house, just because is a "Bank Owned" so you will enter in a bidding competition.
•5) You don't know what could happen after closing of escrow.
Short Sales
•1) The entire process takes longer than a foreclosure, but when the short sale is handled by a Short Sale Specialist, it may take a little less time.
•2) The condition of the property is very often better than a foreclosure.
•3) Normally there will be less competition than a foreclosure.
•4) Very often the seller's lender is willing to cooperate more with the buyer.
•5) There will be no hidden facts about the property since the home owner lives there and he will be able to disclose and transfer the property to you like any other standard sale.
If you are on the market and you don't know what is better, contact me:
I will happily answer to all your real estate questions, visit me at my website
Thank You
Carl Morales
714-955-1932
Carlos, very good information. I tend to agree with you in our experience with both foreclosures and short sales.