Which is better a short sale or foreclosure?
Short sales are less damaging to a credit report than a foreclosure. A foreclosure is when a home is seized and put up for sale by the investor or bank. Every mortgage contract has a lien on the property that allows the bank to control the property if the homeowner stops making mortgage payments.
Where can I find short sale deals?
How to Find Short Sale Homes for Sale
- Multiple Listing Service (MLS) The MLS has become one of the most reliable ways to find short sales.
- Network with like-minded real estate investors and wholesalers.
- Look for investor-friendly real estate agents.
- Check local courthouse records.
- Use online real estate websites.
Is a short sale a foreclosure?
A short sale transaction occurs when mortgage lenders allow the borrower to sell the house for less than the amount owed on the mortgage. The foreclosure process occurs when lenders repossess the house, often against an owner’s will.
Can you finance a short sale?
A short sale is a foreclosure prevention method. Unlike a foreclosure, the property is still owned by the seller. If you need a home quickly, a short sale may not be the right option for you. Financing a short sale is possible, provided you and the lender are willing to wait.
Is it a good idea to buy a short sale house?
The biggest benefit to buying a short sale home is the chance of finding a great deal. And unlike with a foreclosure, a short sale home is likely to be in good condition. Often, the current owner will be still in residence and keeping up basic maintenance. A foreclosure, by contrast, might be in disrepair.
How much of a down payment do you need for a short sale?
If you’re not securing an FHA loan, many conventional lenders will allow a 3% to 5% down payment, but you’ll need a good credit score and will have to pay mortgage insurance on the loan until you reach 20% equity.