The Difference Between A Short Sale & Foreclosure

Homeowners can get attached to their properties; however, some situations can lead them to face foreclosure. Some people might not even know what foreclosure is until they receive a notice in the mail about their home being auctioned off. 

In this situation, it’s normal for owners to to search for solutions. However, a common solution might not be the best one.While traditional real estate processes seem like the best way to go, they come with many challenges that might not be worth facing. 

The average person doesn’t have the time or money to implement these solutions. Here, we’ll go through the basics of foreclosure, and you’ll learn what a short sale is and if it’s the best solution for you. Keep reading!

Understanding Foreclosure In Columbus, OH

When homeowners can’t make their mortgage payments, they go into foreclosure. The legal process happens when the lender or bank sells the property to recoup the money owed.

The first stage of foreclosure starts when a homeowner misses one or more mortgage payments. After this, the lender will send a notice of default. This is a formal demand for the mortgage to be paid in full. If the homeowner doesn’t take action, the lender can file a notice of sale, which means the property will be auctioned.

Once the property is sold at auction, the homeowners no longer have any rights to it. They might even be liable for any debt left after the sale. If you’re facing foreclosure, you must understand your options before taking action.

What Is A Short Sale?

A short sale is a real estate transaction where the proceeds from selling the property fall short of what’s owed on the mortgage. In other words, the homeowners sell their house for less than they owe on their mortgage.

For a short sale to happen, all parties must agree to it. This includes the homeowners, the lender, and any other lienholders. Once the three parties agree, the process can move forward. One common misconception is that a short sale will damage your credit score. 

While a foreclosure will stay on your credit report for seven years, with a short sale, you can improve only your credit score in 2 years.

Sell Your House Quickly In Columbus, OH, To Cash Home Buyers

If you were searching “sell my house for cash in Columbus, OH,” or want to avoid foreclosure, we got you. With P3 Real Property Group, you can sell your house fast for cash. We’re a real estate solutions company that buys houses quickly, so you don’t have to go through the hassle and stress of a traditional sale.

We’ll make you an all-cash offer for your home as-is. This means you won’t have to do any repairs or cleaning before selling your house. We close fast, so you can move on with your life and put this situation behind you. If you want to learn more or get started, contact us today!

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