Short Sale vs Foreclosure, Long Beach Homes For Sale

Short Sale vs Foreclosure, Long Beach Homes For Sale

There are different time frames that you will have to wait after a Short Sale and Foreclosure. Here is some information that can possibly help you. Please call us so that we can further assist you in your current situation.

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Foreclosed Home


A foreclosed home is one in which the owner is unable to make his mortgage loan payments and the bank repossessed the home. These homes are usually not for sale until the entire foreclosure process


Foreclosure

Foreclosure is a process that transfers the right of home ownership from the homeowner to the bank or lender. A home goes into foreclosure when the owner stops paying his mortgage loan payments.

Multiple Listing Service (MLS)

A local or regional service that compiles available real estate for sale by member brokers along with detailed information brokers and agents can access online.

The foreclosure process involves three stages:

Pre-foreclosure: the bank filed a notice of default


Notice of Default

A note from a lender indicating that the borrower has fallen two months behind on his payments. At this point, the owner still has two to three months to try and refinance.

Refinance

The process of paying off one loan to get another with a better interest rate and terms or attempt to sell the home as a short sale.



Short Sale

A home that is listed for sale at a price lower than the amount owed on the mortgage. Homeowners hope to sell their home as a short sale to avoid penalties associated with going into foreclosure.


Auction: the owners can't make the mortgage payments and the bank schedules an auction to sell the home "as-is" (meaning what you see is what you get) to the highest bidder. If the owner comes up with money at the last minute to begin making the mortgage payments, the bank will cancel the auction.

Bank Owned: the home failed to sell at an auction, and the lien holders

Lien

Any legal claim of ownership listed on the title of the home. 



Mortgage Insurance

This insurance protects the mortgage lender against loss if a borrower defaults their loan. Borrowers with a down-payment less than 20% are required to purchase mortgage insurance.

 

REO (Real Estate Owned Home)

Short for "real estate owned," REOs are foreclosed homes owned by banks and lenders. The bank with the primary mortgage on the home is now the owner and will usually list the home with a real estate agent in the local MLS.

Short Sale vs Foreclosure, Long Beach Homes For Sale