A foreclosure is when a property has been taken back from the bank and has been sold off to recoup some of it's losses. Foreclosures are usually considered the last alternative when financial hardship hits and the mortgage can no longer be met.
A Short Sale is when a property owner sells his or her property at a price that is less than what he/she owes the bank on it. An example for be a home in Valencia California that was purchased with 10% down and at a price tag of $500,000. The financed amount was $450,000 after the down payment. Now due to economic conditions, the home can only sell for $350,000, creating a deficiency of $100,000 on the sale of that property. In order for this to happen, the bank, or banks (if multiple loans are taken out on the property), must agree to accept the loss on the sale of the home. To learn more about Short Sales watch my Valencia Short Sale Videos here.
There are many benefits of both buying and selling a distressed property. Click here for a detailed breakdown of these Distressed Property Benefits in Santa Clarita, and elsewhere.
As a Certified Distressed Property Expert, CDPE, I have the tools and knowledge to either help facilitate the sale of your property in distress or find you a property at a tremendous savings. No matter what your situation, I am here to help. Please email me or call me at 818-294-0414 anytime.
