{"id":1114,"date":"2015-06-01T16:53:27","date_gmt":"2015-06-01T16:53:27","guid":{"rendered":"https:\/\/www.movoto.com\/foundation\/?p=1114"},"modified":"2015-06-01T16:53:27","modified_gmt":"2015-06-01T16:53:27","slug":"short-sale-guide","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/short-sale-guide\/","title":{"rendered":"What You Should Know About Short Sale Homes"},"content":{"rendered":"

With the rise of foreclosures after the housing market crisis, the term \u201cshort sale\u201d has become more popular than ever. The sticker price of short sale homes can be very alluring to house hunters who are looking for a bargain.<\/p>\n

While some short sale purchases can be a great investment, many also come with more than their fair share of hurdles, pitfalls, and even risks, making some buyers better suited for them than others.<\/p>\n

Find out what makes you a good candidate for a short sale and if it\u2019s right for you.<\/p>\n

What\u2019s the difference between a short sale and a foreclosure?<\/h2>\n

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Source: Mariette Martinez<\/div>\n

Short sale and foreclosure homes are often mistaken as virtually the same, but they\u2019re actually pretty different.<\/p>\n

In the foreclosure process, when a homeowner defaults on their mortgage, the lender takes control of the title of the home and sells it directly. With a short sale, homeowners are very much involved and are usually trying to sell the home fast in order to avoid going into foreclosure<\/b> by working out a deal with the bank.<\/p>\n

A short sale still affects the credit of the seller, but not as heavily as a foreclosure. Short sale sellers have the ability to take out another home loan in as little as two years, but a foreclosure can weigh down your credit for up to 10 years.<\/p>\n

What are the advantages of a short sale?<\/h2>\n

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Source: Bang Bug<\/div>\n

Even though they\u2019re still taking a loss on the property, lenders generally prefer short sales over foreclosures because they end up losing less. Foreclosing on a property is an expensive endeavor because the lender has to evict anyone living in the home, pay the taxes on the home and maintain its condition until it sells. It also becomes susceptible to liability issues.<\/p>\n

So, even though it can be a frustrating process, a successful short sale usually ends up being a win for everyone involved. The homeowner avoids going into foreclosure, the lender keeps the burden and expense of foreclosure off of their backs, and buyers get a property that hasn\u2019t been abandoned for a bargain price.<\/p>\n

What makes you a good candidate to buy a short sale home?<\/h2>\n

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Source: IMS Short Sales<\/div>\n

Don\u2019t be fooled \u2013 short sale homes are not the fast food drive-thru of the real estate world. It\u2019s a complicated process that can frustrate even the most qualified person. Being a good candidate for a short sale home will not mean that the process will go smoothly–it just means that you have a better shot in coming out on top.<\/p>\n

A few questions to ask yourself to determine whether you\u2019re right for a short sale home include:<\/p>\n