SHORT SALE AND FORECLOSURE: HOW ARE THEY DIFFERENT?

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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.