Difference Between a Short Sale and Foreclosure
Posted by Melinda Morgan on Friday, July 31st, 2009 at 3:53pm.If you are wondering what the difference is between Short Sale and Bank Owned, it is this:
A Short Sale means that the bank has to take a Short- in other words, cannot get back all the money it lent to the seller, because the house is worth less than the seller owes. There are lots of Short Sales going on right now because banks were not very careful in their lending practices and appraisals- so they lent out way more money than many houses were worth. Now they have to take a loss. Sometimes the house really was worth more, sometimes it wasn't. Just because it is a Short Sale, doesn't necessarily mean you are going to get a good deal. You have to know the market and know what the comps are to be sure. That's why having a good Realtor helping you is so important! They can get the comps for you so you know what the house is really worth before you make an offer.
A Bank Owned home has already gone through foreclosure- and now the bank owns it. The bank has already taken a short...if it had to, and is just trying to get rid of it. Bank owned houses can sometimes be the best deals of all! But again, you have to know what the comps are to be sure!
If you want help learning about Short Sales and how to find them, just email me or call me. I'd love to help you search for your next house- I'll teach you about the different areas of Portland, about Short Sales or Bank owned homes, or anything else you need a professional Realtor to help you with! I sell all kinds of houses all over the Portland Metro area.
I am Short Sale Certified, which is important if you are trying to look at Short Sales and Bank Owned homes - because Short Sales are hard to close- you have to know what you are doing.
Let me know if can be of any assistance.
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