Call Now to Get Your Fast Cash Offer:  540-324-3048 
Satisfaction HomeBuyers We BUY Houses in Southern Maryland
  • Home
  • How It Works
  • FAQ
  • Contact Us
  • Articles of interest

Foreclosure vs. Short Sale – What’s the Difference?

1/7/2016

0 Comments

 
Picture
Whether you’re a buyer or a borrower / seller, a short sale and foreclosure each present different advantages and difficulties.

What Is A Foreclosure In Prince Georges County MD?

In simple terms… “Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.”.  If you stop making your house payments… your lender has the right to foreclose on your property so they can attempt to recoup their money that was lent to you. 

A home is typically foreclosed on when a borrower fails to make mortgage payments. The lending institution assumes ownership and possession of the property, evicting the borrower. These properties are then sold at auction or more traditional means utilizing the service of real estate agents. A foreclosure can damage the credit rating of a borrower, and make it very difficult to obtain a mortgage for many years.

Depending on the state that you live in… a foreclosure can work in different ways. Check out the foreclosure process information at the U.S. Department of Housing and Urban Development (HUD) Government website.

What Is A Short Sale?

In a short sale, the home is still owned by the borrower. The definition of a short sale is… “A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens’ full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt”.

In some cases, a short sale is an option agreed upon by borrowers and lenders. In a short sale, the home is sold for less than the outstanding balance of the mortgage. The unpaid balance (known as the deficiency) may or may not be forgiven (still be owed by the borrower).

This option typically takes some time, as a few different lending institutions may own the mortgage. All parties who have a stake in the property must agree to the terms of the sale, and a potential deal could fall through if even one lender doesn’t agree.

Short Sale vs. Foreclosure – Your OptionsWhile both options can have ramifications, a short sale often has less of an impact on the borrowers creditworthiness. A foreclosure could impact a borrower’s credit score by 300 or more points, where a short sale may only dent the credit score by 100 points.
Borrowers who are foreclosed on are often ineligible to purchase another home for 5-7 years with a traditional mortgage, where under certain circumstances, a short sale borrower can purchase immediately.

As many Americans struggle with an economy that has yet to completely recover from the 2008 crash, folks are having a hard time making monthly mortgage payments. Choosing between being foreclosed and initiating a short sale (or a 3rd option…  selling your Prince Georges County house fast) is an easy choice for a borrower having troubles paying their mortgage on time.

Sometimes, lenders are willing to work with borrowers to complete a short sale, to avoid the fees and time consuming process of conducting a foreclosure.
Our suggestion is always this.
  1. Talk with your lender and discuss ways that they can work with you on your loan. We offer this service where we can help guide you in the right direction if you run into issues with your lender… just reach out to us on our Contact page and we’ll discuss your situation.
  2. Attempt a short sale or other program your lender may have that forgives part of your loan, creates a new / more affordable monthly payment so you can get back on your feet, etc.
  3. If the bank isn’t willing to work with you very much… your best option may be to sell your house. Work with a local real estate house buyer service like WE BUY SOUTHERN MD HOMES to sell your house fast for an all-cash offer. If you’re interested we can look at your situation and make you a fair offer on your house within 24 hours. Just fill out the form on our website at the bottom.
  4. Foreclosure. Last resort is to let the house fall into foreclosure. This is the worst possible scenario. It’ll harm your credit and you could still be left with money owed to the bank even after the foreclosure is finished.
By knowing your options, you may be able to dodge a significant impact to your credit score, allowing you to purchase a new home when your situation improves. A foreclosure on your credit report makes that possibility extremely difficult for 5-7 years, so if you have the opportunity, a short sale can be the better option.
Have a pending foreclosure?  We’d like to make you a fair all-cash offer on your house.
Give us a call anytime at (240) 412-2372 or
Fill out the form on this website today!


    Please Fill Out the Form to Get Your Cash Offer.

    -
    -
Get Your Cash Offer Now
0 Comments

What if I Have Low Or even No Equity?

12/29/2015

1 Comment

 
Picture
Aren’t Sure How To Sell, Without Losing Money?

Is your house underwater and you don’t have enough equity to pay a listing agent?

Many Sellers with houses in Maryland, Virginia, & DC purchased their properties a while ago and the market values haven’t recovered where there is enough money over the mortgage payoff to be able to pay a real estate agent. The simple fact is that a real estate agent won't sell your house unless they know that there will be enough in the offer price for them to receive their commission.   

In other words, many sellers are effectively underwater on their mortgage.  That’s a HUGE problem, and we have an answer for you, our No Equity Lease/Purchase program!  Even with the nice rebound of appreciation over the last few years, almost 7.5 million homeowners are underwater, according to RealtyTrac. And many area homeowners are effectively underwater, meaning they have less than 20 percent equity.  The hard fact is that home values just have not recovered to pay both a real estate agent and payoff the mortgage.We Buy Southern MD Homes has a solution for you! Our Low/No Equity House Purchase Program maybe the SOLUTION for you.  The cure for many real estate problems is time. We can work with you to get the time you need.

Benefits to you (the seller):No fees, No Waiting, No Repairs!  especially Realtor commissions at up to 6% or more
  • Stops the bleeding of mortgage payments if property is vacant.
  • Debt relief – we will help make your mortgage payment
  • You can get a high sales price for your property (no haggling).
  • We take over maintenance and Repairs on the property.

Talk With Us About Our No/Low Equity House Purchase Program.Just submit your basic info below and we’ll hop on the phone to talk about your situation and whether we can help buy your house.

    No or Low Equity? We buy houses in ANY CONDITION! We can pay your mortgage and you will not pay any commissions, agents, or fees. Please fill out the form to get a call in 24 hours!

    -
    -
    Please fill in your estimated loan balance
Help with Low/No Equity
1 Comment

    Satisfaction HomeBuyers

    We are a Real Estate Solutions company. We buy houses in Maryland, Virginia, and DC.

    Do you need to sell a house fast?

    Sell us your house today!

    Archives

    February 2017
    June 2016
    May 2016
    April 2016
    January 2016
    December 2015

    Categories

    All
    Divorce
    Eviction
    Foreclosure
    FSBO
    Home Equity
    Home Inspection
    Home Selling
    Inheritence
    Landlords
    Mortgage
    Negative Equity
    Pre-foreclosure
    Rental Property
    Scams
    Selling Tips
    Short Sale
    Underwater
    Underwater Home
    Unwanted House
    Vacant House

    RSS Feed

We are a real estate solutions and investment firm that specializes in helping homeowners get rid of burdensome houses fast. We are not realtors, we are investors and problem solvers who can buy your house fast with a fair all cash offer.

Privacy Policy      Terms & Conditions