With so many terms that have become popular in real estate in recent years, previously unknown names now familiar. However, this does not mean they are understood and there is still much confusion among buyers and sellers of properties.
Many wonder what the best option is if you buy a house in “short sale” or “short sale” or a house and repossessed by the bank. It is a decision itself, or rather, the decision will take you the type of property you find.
To clarify frequently asked questions on two widely used terms, I bring you the main differences between “short sale” and home repossessed or “foreclosure”.
Short sale. Is the sale of property for less than what is owed on the mortgage bank value. It requires the approval of the owner of the mortgage bank, but housing can still be in the hands of the original buyers.
Repossessed. In English “foreclosure” or “REO”; executed or foreclosed properties as well-known already in possession of the bank. I.e. the bank owns it.
Approval of the offer
Short sale. In short sales offer must be approved by the bank that holds the mortgage and homeowners. So you will see that the contract says that requires a “third party approval”, or approval of a third party.
Repossessed. In a property approval is just the bank, so the answer to the offer received is typically much faster than in a “short sale”.
Short sale. In short sales, receive the offer signed by the seller and the buyer does not guarantee that the transaction will be completed. There are many aspects, including the price and to resolve legal and final approval can take months.
Repossessed. The price must be clear from the outset as well as legal aspects. Being in possession of the bank, and all the information of the titles eliminating disadvantages for buyers should have clarified.
Short sale. In a ‘short sale “the price at which a property is offered for sale could not be real. The last word of the price at which the house has the bank will be sold. Even they may require that sellers provide a substantial amount at closing or one of the two parties, buyers or sellers take over some of the debts of the property, such as maintenance or “HOA”. In some cases the properties may have more than one mortgage.
Repossessed. In a repossessed, the price does not change. The bank could accept offers above the asking price, if there are multiple buyers, but once fixed, should be no surprises during the process.
Time of the purchase process
Short sale. In short sales “surprises” that delay the process are common. In many cases where the contract has not set the price the bank is willing to accept, and vendors selling could withdraw if an agreement is not reached starts. There are cases that can take three to six months, without coming to realize.
Repossessed. In a property in foreclosure usually after the offer, it only takes the time it takes to process the loan, if any. If cash purchase can specify in a few days.
Short sale. Most of the homes in “short sale” have not been abandoned, and many can be found in excellent condition. Most include electro domestic appliances.
Repossessed. The mostly foreclosed properties have been vacant for months, and very few have been properly maintained. Many do not include goods or important equipment they need mostly in bathrooms and kitchen.