On the buyer side, short sales typically take three to four months
to complete and many of the closing and repair costs are shifted
from the seller to the lender.
On the other hand, a foreclosure occurs when a homeowner can
no longer make payments on their home so the bank begins the
process of repossessing it. A foreclosure usually moves much
faster than a short sale and is more financially damaging to
the homeowner.
After foreclosure the bank can sell the home in a foreclosure
auction. For buyers, foreclosures are riskier than short sales,
because homes are often bought sight unseen, with no
inspection or warranty.
