
When you’re browsing the listings, you might encounter the terms pre-foreclosure or short sale. What’s the scoop on these homes?
It all starts when homeowners with mortgages find themselves under water — property values drop, and a homeowner owes more on the loan than the house is worth. Further, the owner has fallen on difficult financial circumstances and is unable to find assets or sources of income to keep covering the regular monthly payments. Hoping to avoid foreclosure and keep some control over the transfer of the property, the homeowner asks the lender to approve a short sale of the home — meaning the lender will agree to receive less money than the outstanding mortgage balance from an unrelated person who buys the house.
Continue reading “What Is a Short Sale — And What Does It Mean for Home Buyers?”