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Traditional Sales vs. Short Sales vs. Foreclosures

Traditional Sales vs. Short Sales vs. Foreclosures

Traditional Sales vs. Short Sales vs. Foreclosures

Property sales mainly fall into three main kinds - the typical traditional sales, short sales and then there are the foreclosures. All of them have their own benefits and negatives. Although it's easy to get a general idea of what they are here, you stand to gain a lot by knowing more in-depth about them.

Traditional Sales

The Traditional way of selling property involves the buyer and seller agreeing to sell a property for a specific price. The seller doesn't necessarily always want to sell in this market. There may be some reason forcing them to sell and the usual ones include relocation, divorce, death and other personal ones.

Short Sales

In a short sale, the sale proceeds don't pay off all of the loans in full. In order to allow a short sale, the seller will have to get approval from their lender. If you are the seller, you will be required to provide a 'hardship letter' to your lender or lenders explaining the kind of 'hardship(s)' you are facing. Some of the common hardships include loss of employment, injury, illness, divorce, death of spouse, or other factors causing unforeseen increase in expenses - even child birth.

Some of the advantages of Short Sale vs Foreclosure include:

  1. Ability to retain your dignity, as you sold your house.
  2. Not having the word 'foreclosure' associated with your name or in your credit report.
  3. Eligibility to buy another house in 2 years (rather than 5 years).

Foreclosure

Foreclosure deals are considered great for home buyers who are looking for good deals. But dealing with the intricacies of such a transaction can be quite challenging. The real picture could be much uglier than you think it is. But we at HelpFindingMyAgent can help you find a real estate agent who can iron out the complexities. Contact us at 1-855-566-6652 now and we will professionally help you find the local top agent with foreclosure experience.

Sellers may be forced into this state due to a number of reasons such as loss of employment, excess debt and rising bill obligations, inability to work because of medical problems, even divorce and job transfers to other states.

To the seller, foreclosures can be very painful, but there are two main advantages of Foreclosures vs Short Sales. First, under special circumstances you can exclude cancelled debt from your tax return. And secondly, there's no need to make mortgage payments. However, the proceedings can take a long time - several months or more, to complete. One good thing is that the house is yours until the foreclosure is finalized so you can save your funds for a new place.

Consider these Foreclosure vs Short Sale homeowner consequences before you make your decision, whether you are a buyer or seller. Reach HelpFindingMyAgent now at 1-855-566-6652 to find the best real estate agent to help you find negotiate tricky waters to find the best properties and deals.

About the Editor

Arun Kumar

The old adage is that hindsight is always 20/20. Seven years ago, I embarked on a journey as a serial entrepreneur. I built my very first business in India and later expanded to the US. In weathering the ups and downs of several business brands, I discovered my passion for the digital platform.

I could see a huge opportunity to connect home buyers and sellers with quality information and service providers. That led to the birth and co-founding of HelpFindingMyAgent.com


Arun Kumar
Co-Founder of HFMA

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