It goes without saying that you cannot live without one thing: the roof over your head. Most people want their own home, especially if they have a family to take care of. Of course, you will need to do a lot of planning before buying a home, as this decision can have a huge impact on you and your family. Let’s know more about it.
When buying a house
If you want to buy your own home, you have to consider many things. You may have to face some serious issues. For example, if you lose your job, it will be more difficult for you to keep your word. And in the worst case, you may have to deal with a short sale or foreclosure. This can have a negative impact on your routine life. So you might want to understand how it works.
Short Sale and Foreclosure
If you are not familiar with the two terms mentioned above, you should first know the difference between the short sale and the foreclosure process. According to most people, foreclosure is a situation where you are forced to return your home to the lending authority, which is a bank most of the time. Once the house is handed over from bank to bank, you no longer have to pay the debt.
a misconception
Apart from this, some people have the misconception that short sale is not a real transaction, which is not true. No matter what, you need to keep your word and be ready to meet the deadline.
Mortgage’s trial
In the event of a foreclosure, the lender has to put your house up for auction to sell it to the person who makes the highest offer. The lender will advertise the property for sale within a set period of time. However, the law requires the homeowner to appear in court. The owner of the house is the same person who borrowed from the bank. In court, the owner must present his point of view on the mortgage. If you, the owner, have solid proof, you should present it. If you do not have strong evidence, the judge can enter a verdict returning your home to the lender.
On the other hand, in case of a short sale, you can sell your property. You will find a buyer yourself and you will not have to appear in court. And it will be an agreement between you and the lender. However, in some special cases, you will need professional advice from a good real estate broker. But before you close the deal, you’ll need to make sure the lender agrees to the procedure.
The two processes are different in some respects. It is important that you complete the short sale as soon as possible or the lender may lose interest in the property and not purchase it. But in case of foreclosure, there is not much you can do since you will have to comply with the court decision.
To summarize, foreclosure is not easy. Therefore, it is important that you get help from a professional so that the process is completed as smoothly as possible.