“We’re interested in a foreclosure you have listed on XXXXX Road. But we just wasted a lot of time trying to buy two short sales and don’t want to go through that again. Is this also a short sale?”
***ANSWER:
Here’s the sad and scary thing: The person who asked this question is a real estate agent!
A short sale and a foreclosure are two entirely different things.
A short sale is where the proceeds from selling a home are less than what is owed on the mortgage(s). So the bank must be convinced to take this lesser amount…which usually takes about 2 months and is successful about 1/3 of the time. Banks REALLY don’t want to lose this money.
A foreclosure is owned by the bank, who REALLY want to get the property off their books. The sale none of the red tape, delays, or likelihood of failure.
If you’re buying a home, just remember this shorthand:
Short sale = bad.
Foreclosure = good.
