Many Florida residents and others around the country have experienced financial difficulties, particularly stemming from the housing crisis about a decade ago. Families were faced with the possibility of losing their homes. While the economy has improved and the crisis has passed, there are often homes in many markets nationwide that are available through a short sale, pre-foreclosure or home foreclosure.
Buyers are often expecting good deals with homes available through these situations. There are potential issues that can arise with purchasing such homes. Therefore, industry experts suggest that consumers thoroughly understand the differences among these types of homes before purchasing one.
In a short sale situation, a homeowner asks the financial institution to accept a payoff on the home loan that is less than what is owed on the loan. A drawback to a short sale is the length of the processing time, which can be from six months to a year before it can close. A home is considered to be in pre-foreclosure if there have been no mortgage payments made in more than 90 days. In many cases, homes in pre-foreclosure can be saved by homeowners.
Homes in foreclosure means that payments have not been made on the property and the lender has reclaimed it. Often, homes in foreclosure are purchased without buyers having the opportunity to see them. Experts stress that purchasing homes in foreclosure is potentially risky. Research should be conducted on any home before purchasing it.
While some investors may be looking for a good deal on a short sale, pre-foreclosure or foreclosure, there are Florida residents who are concerned about losing their homes. A knowledgeable bankruptcy attorney can work with clients to develop a strategy to avoid home foreclosure if possible. An experienced lawyer can provide valuable guidance to those people who want to get their finances back on track.
Source: realtor.com, “Difference Between Short Sale, Pre-foreclosure, and Foreclosure“, Audrey Ference, Aug. 23, 2017