Short Sales
Short sales are the hottest thing going in the distressed-property market we currently have, and the trend is expected to get even hotter in coming weeks, when the government starts handing out cash to encourage lenders to close these deals.
“Banks have ramped up short sale approvals,” said Duane Legate of House Buyer Network, which connects short sellers with buyers. “They’re hiring a lot of the people who once worked in the mortgage-lending industry and moved them over to short sales.”
Foreclosure
The foreclosure process is not very difficult to understand. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure.
After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default (NOD). At the County Recorder’s Office. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off.
Which is best for you?
Now that you are able to understand both a little better, you have a choice to make. Which one of these will be better for your personal situation? A foreclosure is painful, but a short sale can be this way as well. Foreclosures hurt because you not only lose your home, you are faced with having to deal with a huge credit hit. Short sales hurt because you may avoid foreclosure but you lose your home and end up still owing money.
