The recession and the turbulence of the housing market in recent years has caused many people to have difficulty keeping up with their mortgage payments. It has also resulted in a large number of homeowners who owe more money on their mortgage loans than the current market value of their properties. Many homes are heading towards short sale foreclosure.
When real estate is sold for less than the balance owed on the mortgage for the home short sale is the term used. Oftentimes homeowners have trouble keeping up with rising property taxes, mortgage payments and the other expenses involved with owning a home. If they decide that they either can not or do not wish to continue making the mortgage payments, short sale foreclosure can result.
For homeowners who decide on a short sale foreclosure can often be avoided. There is short sale help available, and many realtors specialize in short sales and short sale foreclosures.
There are some benefits to a short sale versus a foreclosure. With a short sale, the homeowner is in control of the sale. With foreclosure, it is up to the bank. Homeowners who have not been 30 days or more on mortgage payments can often buy another home immediately after a short sale. After a foreclosure, it usually takes five years before you can buy another home if the foreclosed home was your primary residence. It takes seven years if it was an investment property.
